Correlation Between Jiangsu Seagull and Changchun Faway
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By analyzing existing cross correlation between Jiangsu Seagull Cooling and Changchun Faway Automobile, you can compare the effects of market volatilities on Jiangsu Seagull and Changchun Faway 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 Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Seagull and Changchun Faway.
Diversification Opportunities for Jiangsu Seagull and Changchun Faway
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Changchun is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Seagull Cooling and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto 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 Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of Jiangsu Seagull i.e., Jiangsu Seagull and Changchun Faway go up and down completely randomly.
Pair Corralation between Jiangsu Seagull and Changchun Faway
Assuming the 90 days trading horizon Jiangsu Seagull Cooling is expected to generate 1.69 times more return on investment than Changchun Faway. However, Jiangsu Seagull is 1.69 times more volatile than Changchun Faway Automobile. It trades about 0.02 of its potential returns per unit of risk. Changchun Faway Automobile is currently generating about 0.02 per unit of risk. If you would invest 955.00 in Jiangsu Seagull Cooling on August 24, 2024 and sell it today you would lose (11.00) from holding Jiangsu Seagull Cooling or give up 1.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Seagull Cooling vs. Changchun Faway Automobile
Performance |
| Timeline |
| Jiangsu Seagull Cooling |
| Changchun Faway Auto |
Jiangsu Seagull and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Seagull and Changchun Faway
The main advantage of trading using opposite Jiangsu Seagull and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Seagull position performs unexpectedly, Changchun Faway 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 Changchun Faway will offset losses from the drop in Changchun Faway's long position.| Jiangsu Seagull vs. CSSC Offshore Marine | Jiangsu Seagull vs. Suzhou Weizhixiang Food | Jiangsu Seagull vs. Yankershop Food Co | Jiangsu Seagull vs. Xinjiang Baodi Mining |
| Changchun Faway vs. Shenzhen Zhongzhuang Construction | Changchun Faway vs. Kuangda Technology Group | Changchun Faway vs. Glodon Software Co | Changchun Faway vs. Hubei Forbon Technology |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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