Correlation Between Servyou Software and Jiangsu Flowers
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By analyzing existing cross correlation between Servyou Software Group and Jiangsu Flowers King, you can compare the effects of market volatilities on Servyou Software and Jiangsu Flowers 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 Jiangsu Flowers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Servyou Software and Jiangsu Flowers.
Diversification Opportunities for Servyou Software and Jiangsu Flowers
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Servyou and Jiangsu is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Servyou Software Group and Jiangsu Flowers King in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Flowers King 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 Jiangsu Flowers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Flowers King has no effect on the direction of Servyou Software i.e., Servyou Software and Jiangsu Flowers go up and down completely randomly.
Pair Corralation between Servyou Software and Jiangsu Flowers
Assuming the 90 days trading horizon Servyou Software Group is expected to generate 0.68 times more return on investment than Jiangsu Flowers. However, Servyou Software Group is 1.47 times less risky than Jiangsu Flowers. It trades about 0.35 of its potential returns per unit of risk. Jiangsu Flowers King is currently generating about -0.1 per unit of risk. If you would invest 2,764 in Servyou Software Group on November 4, 2024 and sell it today you would earn a total of 506.00 from holding Servyou Software Group or generate 18.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Servyou Software Group vs. Jiangsu Flowers King
Performance |
| Timeline |
| Servyou Software |
| Jiangsu Flowers King |
Servyou Software and Jiangsu Flowers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Servyou Software and Jiangsu Flowers
The main advantage of trading using opposite Servyou Software and Jiangsu Flowers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Servyou Software position performs unexpectedly, Jiangsu Flowers 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 Flowers will offset losses from the drop in Jiangsu Flowers' long position.| Servyou Software vs. Cansino Biologics | Servyou Software vs. Fujian Boss Software | Servyou Software vs. Linkage Software Co | Servyou Software vs. Zhengping RoadBridge Constr |
| Jiangsu Flowers vs. Universal Scientific Industrial | Jiangsu Flowers vs. Hainan Mining Co | Jiangsu Flowers vs. Penyao Environmental Protection | Jiangsu Flowers vs. Bosera CMSK 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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