Correlation Between Servyou Software and Jiangxi Hengda
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By analyzing existing cross correlation between Servyou Software Group and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Servyou Software and Jiangxi Hengda 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 Servyou Software with a short position of Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Servyou Software and Jiangxi Hengda.
Diversification Opportunities for Servyou Software and Jiangxi Hengda
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Servyou and Jiangxi is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Servyou Software Group and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi and Servyou Software 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 Servyou Software Group are associated (or correlated) with Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Servyou Software i.e., Servyou Software and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Servyou Software and Jiangxi Hengda
Assuming the 90 days trading horizon Servyou Software Group is expected to generate 0.97 times more return on investment than Jiangxi Hengda. However, Servyou Software Group is 1.03 times less risky than Jiangxi Hengda. It trades about -0.01 of its potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about -0.01 per unit of risk. If you would invest 3,998 in Servyou Software Group on October 16, 2024 and sell it today you would lose (1,267) from holding Servyou Software Group or give up 31.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Servyou Software Group vs. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Servyou Software |
| Jiangxi Hengda Hi |
Servyou Software and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Servyou Software and Jiangxi Hengda
The main advantage of trading using opposite Servyou Software and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Servyou Software position performs unexpectedly, Jiangxi Hengda 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 Hengda will offset losses from the drop in Jiangxi Hengda's long position.| Servyou Software vs. Henan Shuanghui Investment | Servyou Software vs. Nuode Investment Co | Servyou Software vs. Harbin Air Conditioning | Servyou Software vs. Citic Guoan Wine |
| Jiangxi Hengda vs. Nanxing Furniture Machinery | Jiangxi Hengda vs. Zhejiang Yinlun Machinery | Jiangxi Hengda vs. Servyou Software Group | Jiangxi Hengda vs. Keda Clean Energy |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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