Correlation Between Southern PublishingMedia and Jiangsu Pacific
Specify exactly 2 symbols:
By analyzing existing cross correlation between Southern PublishingMedia Co and Jiangsu Pacific Quartz, you can compare the effects of market volatilities on Southern PublishingMedia and Jiangsu Pacific 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 Southern PublishingMedia with a short position of Jiangsu Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern PublishingMedia and Jiangsu Pacific.
Diversification Opportunities for Southern PublishingMedia and Jiangsu Pacific
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Southern and Jiangsu is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Southern PublishingMedia Co and Jiangsu Pacific Quartz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Pacific Quartz and Southern PublishingMedia 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 Southern PublishingMedia Co are associated (or correlated) with Jiangsu Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Pacific Quartz has no effect on the direction of Southern PublishingMedia i.e., Southern PublishingMedia and Jiangsu Pacific go up and down completely randomly.
Pair Corralation between Southern PublishingMedia and Jiangsu Pacific
Assuming the 90 days trading horizon Southern PublishingMedia Co is expected to generate 0.91 times more return on investment than Jiangsu Pacific. However, Southern PublishingMedia Co is 1.1 times less risky than Jiangsu Pacific. It trades about 0.11 of its potential returns per unit of risk. Jiangsu Pacific Quartz is currently generating about 0.01 per unit of risk. If you would invest 1,144 in Southern PublishingMedia Co on November 3, 2024 and sell it today you would earn a total of 468.00 from holding Southern PublishingMedia Co or generate 40.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Southern PublishingMedia Co vs. Jiangsu Pacific Quartz
Performance |
| Timeline |
| Southern PublishingMedia |
| Jiangsu Pacific Quartz |
Southern PublishingMedia and Jiangsu Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern PublishingMedia and Jiangsu Pacific
The main advantage of trading using opposite Southern PublishingMedia and Jiangsu Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern PublishingMedia position performs unexpectedly, Jiangsu Pacific 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 Jiangsu Pacific will offset losses from the drop in Jiangsu Pacific's long position.The idea behind Southern PublishingMedia Co and Jiangsu Pacific Quartz 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.
| Jiangsu Pacific vs. Shandong Intco Medical | Jiangsu Pacific vs. Union Semiconductor Co | Jiangsu Pacific vs. Winner Medical Co | Jiangsu Pacific vs. Chison Medical Technologies |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |