Correlation Between Jiangsu Seagull and Aba Chemicals
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By analyzing existing cross correlation between Jiangsu Seagull Cooling and Aba Chemicals Corp, you can compare the effects of market volatilities on Jiangsu Seagull and Aba Chemicals 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 Jiangsu Seagull with a short position of Aba Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Seagull and Aba Chemicals.
Diversification Opportunities for Jiangsu Seagull and Aba Chemicals
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jiangsu and Aba is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Seagull Cooling and Aba Chemicals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aba Chemicals Corp and Jiangsu Seagull 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 Jiangsu Seagull Cooling are associated (or correlated) with Aba Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aba Chemicals Corp has no effect on the direction of Jiangsu Seagull i.e., Jiangsu Seagull and Aba Chemicals go up and down completely randomly.
Pair Corralation between Jiangsu Seagull and Aba Chemicals
Assuming the 90 days trading horizon Jiangsu Seagull Cooling is expected to generate 0.91 times more return on investment than Aba Chemicals. However, Jiangsu Seagull Cooling is 1.09 times less risky than Aba Chemicals. It trades about 0.04 of its potential returns per unit of risk. Aba Chemicals Corp is currently generating about 0.01 per unit of risk. If you would invest 1,038 in Jiangsu Seagull Cooling on October 25, 2024 and sell it today you would earn a total of 170.00 from holding Jiangsu Seagull Cooling or generate 16.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Seagull Cooling vs. Aba Chemicals Corp
Performance |
| Timeline |
| Jiangsu Seagull Cooling |
| Aba Chemicals Corp |
Jiangsu Seagull and Aba Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Seagull and Aba Chemicals
The main advantage of trading using opposite Jiangsu Seagull and Aba Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Seagull position performs unexpectedly, Aba Chemicals 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 Aba Chemicals will offset losses from the drop in Aba Chemicals' long position.| Jiangsu Seagull vs. Qingdao Foods Co | Jiangsu Seagull vs. Eyebright Medical Technology | Jiangsu Seagull vs. Namchow Food Group | Jiangsu Seagull vs. Anji Foodstuff Co |
| Aba Chemicals vs. Zijin Mining Group | Aba Chemicals vs. Wanhua Chemical Group | Aba Chemicals vs. Baoshan Iron Steel | Aba Chemicals vs. Rongsheng Petrochemical Co |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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