Correlation Between JiShi Media and Tongxing Environmental
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By analyzing existing cross correlation between JiShi Media Co and Tongxing Environmental Protection, you can compare the effects of market volatilities on JiShi Media and Tongxing Environmental 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 JiShi Media with a short position of Tongxing Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of JiShi Media and Tongxing Environmental.
Diversification Opportunities for JiShi Media and Tongxing Environmental
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JiShi and Tongxing is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding JiShi Media Co and Tongxing Environmental Protect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongxing Environmental and JiShi Media 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 JiShi Media Co are associated (or correlated) with Tongxing Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongxing Environmental has no effect on the direction of JiShi Media i.e., JiShi Media and Tongxing Environmental go up and down completely randomly.
Pair Corralation between JiShi Media and Tongxing Environmental
Assuming the 90 days trading horizon JiShi Media is expected to generate 5.3 times less return on investment than Tongxing Environmental. In addition to that, JiShi Media is 1.38 times more volatile than Tongxing Environmental Protection. It trades about 0.04 of its total potential returns per unit of risk. Tongxing Environmental Protection is currently generating about 0.31 per unit of volatility. If you would invest 1,362 in Tongxing Environmental Protection on August 25, 2024 and sell it today you would earn a total of 309.00 from holding Tongxing Environmental Protection or generate 22.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JiShi Media Co vs. Tongxing Environmental Protect
Performance |
| Timeline |
| JiShi Media |
| Tongxing Environmental |
JiShi Media and Tongxing Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JiShi Media and Tongxing Environmental
The main advantage of trading using opposite JiShi Media and Tongxing Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JiShi Media position performs unexpectedly, Tongxing Environmental 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 Tongxing Environmental will offset losses from the drop in Tongxing Environmental's long position.| JiShi Media vs. Chengdu Kanghua Biological | JiShi Media vs. Beijing Wantai Biological | JiShi Media vs. Suzhou Novoprotein Scientific | JiShi Media vs. Aluminum Corp of |
| Tongxing Environmental vs. China Petroleum Chemical | Tongxing Environmental vs. PetroChina Co Ltd | Tongxing Environmental vs. China State Construction | Tongxing Environmental vs. China Railway Group |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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