Correlation Between Guizhou BroadcastingTV and Jiangxi JDL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guizhou BroadcastingTV Info and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Guizhou BroadcastingTV and Jiangxi JDL and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Guizhou BroadcastingTV with a short position of Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou BroadcastingTV and Jiangxi JDL.
Diversification Opportunities for Guizhou BroadcastingTV and Jiangxi JDL
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guizhou and Jiangxi is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou BroadcastingTV Info and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental and Guizhou BroadcastingTV is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Guizhou BroadcastingTV Info are associated (or correlated) with Jiangxi JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of Guizhou BroadcastingTV i.e., Guizhou BroadcastingTV and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Guizhou BroadcastingTV and Jiangxi JDL
Assuming the 90 days trading horizon Guizhou BroadcastingTV Info is expected to generate 1.37 times more return on investment than Jiangxi JDL. However, Guizhou BroadcastingTV is 1.37 times more volatile than Jiangxi JDL Environmental. It trades about -0.04 of its potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about -0.07 per unit of risk. If you would invest 975.00 in Guizhou BroadcastingTV Info on August 29, 2024 and sell it today you would lose (31.00) from holding Guizhou BroadcastingTV Info or give up 3.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou BroadcastingTV Info vs. Jiangxi JDL Environmental
Performance |
| Timeline |
| Guizhou BroadcastingTV |
| Jiangxi JDL Environmental |
Guizhou BroadcastingTV and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou BroadcastingTV and Jiangxi JDL
The main advantage of trading using opposite Guizhou BroadcastingTV and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou BroadcastingTV position performs unexpectedly, Jiangxi JDL can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jiangxi JDL will offset losses from the drop in Jiangxi JDL's long position.The idea behind Guizhou BroadcastingTV Info and Jiangxi JDL Environmental pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Jiangxi JDL vs. Kontour Medical Technology | Jiangxi JDL vs. Sino Medical Sciences | Jiangxi JDL vs. Arrow Home Group | Jiangxi JDL vs. Cofoe Medical Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stocks Directory Find actively traded stocks across global markets |