Correlation Between Jiangsu Seagull and Xiamen East
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By analyzing existing cross correlation between Jiangsu Seagull Cooling and Xiamen East Asia, you can compare the effects of market volatilities on Jiangsu Seagull and Xiamen East 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 Xiamen East. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Seagull and Xiamen East.
Diversification Opportunities for Jiangsu Seagull and Xiamen East
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Xiamen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Seagull Cooling and Xiamen East Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen East Asia 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 Xiamen East. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen East Asia has no effect on the direction of Jiangsu Seagull i.e., Jiangsu Seagull and Xiamen East go up and down completely randomly.
Pair Corralation between Jiangsu Seagull and Xiamen East
Assuming the 90 days trading horizon Jiangsu Seagull Cooling is expected to generate 1.12 times more return on investment than Xiamen East. However, Jiangsu Seagull is 1.12 times more volatile than Xiamen East Asia. It trades about -0.1 of its potential returns per unit of risk. Xiamen East Asia is currently generating about -0.12 per unit of risk. If you would invest 1,005 in Jiangsu Seagull Cooling on August 28, 2024 and sell it today you would lose (65.00) from holding Jiangsu Seagull Cooling or give up 6.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Seagull Cooling vs. Xiamen East Asia
Performance |
| Timeline |
| Jiangsu Seagull Cooling |
| Xiamen East Asia |
Jiangsu Seagull and Xiamen East Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Seagull and Xiamen East
The main advantage of trading using opposite Jiangsu Seagull and Xiamen East positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Seagull position performs unexpectedly, Xiamen East 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 Xiamen East will offset losses from the drop in Xiamen East's long position.| Jiangsu Seagull vs. Chengtun Mining Group | Jiangsu Seagull vs. Allmed Medical Products | Jiangsu Seagull vs. Uroica Mining Safety | Jiangsu Seagull vs. Zhejiang Yayi Metal |
| Xiamen East vs. Jinhui Mining Co | Xiamen East vs. Zhengzhou Coal Mining | Xiamen East vs. Bus Online Co | Xiamen East vs. Xiangyang Automobile Bearing |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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