Correlation Between JiShi Media and Zhengping RoadBridge
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By analyzing existing cross correlation between JiShi Media Co and Zhengping RoadBridge Constr, you can compare the effects of market volatilities on JiShi Media and Zhengping RoadBridge 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 Zhengping RoadBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of JiShi Media and Zhengping RoadBridge.
Diversification Opportunities for JiShi Media and Zhengping RoadBridge
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JiShi and Zhengping is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding JiShi Media Co and Zhengping RoadBridge Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengping RoadBridge 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 Zhengping RoadBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengping RoadBridge has no effect on the direction of JiShi Media i.e., JiShi Media and Zhengping RoadBridge go up and down completely randomly.
Pair Corralation between JiShi Media and Zhengping RoadBridge
Assuming the 90 days trading horizon JiShi Media Co is expected to under-perform the Zhengping RoadBridge. But the stock apears to be less risky and, when comparing its historical volatility, JiShi Media Co is 1.13 times less risky than Zhengping RoadBridge. The stock trades about -0.46 of its potential returns per unit of risk. The Zhengping RoadBridge Constr is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 371.00 in Zhengping RoadBridge Constr on October 14, 2024 and sell it today you would lose (5.00) from holding Zhengping RoadBridge Constr or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JiShi Media Co vs. Zhengping RoadBridge Constr
Performance |
| Timeline |
| JiShi Media |
| Zhengping RoadBridge |
JiShi Media and Zhengping RoadBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JiShi Media and Zhengping RoadBridge
The main advantage of trading using opposite JiShi Media and Zhengping RoadBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JiShi Media position performs unexpectedly, Zhengping RoadBridge 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 Zhengping RoadBridge will offset losses from the drop in Zhengping RoadBridge's long position.| JiShi Media vs. Jiangsu Yueda Investment | JiShi Media vs. Henan Shuanghui Investment | JiShi Media vs. Cultural Investment Holdings | JiShi Media vs. Ningbo Fujia Industrial |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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