Correlation Between Jiangsu Seagull and Shanghai Zhangjiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Seagull Cooling and Shanghai Zhangjiang Hi Tech, you can compare the effects of market volatilities on Jiangsu Seagull and Shanghai Zhangjiang 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 Shanghai Zhangjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Seagull and Shanghai Zhangjiang.
Diversification Opportunities for Jiangsu Seagull and Shanghai Zhangjiang
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Shanghai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Seagull Cooling and Shanghai Zhangjiang Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Zhangjiang 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 Shanghai Zhangjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Zhangjiang has no effect on the direction of Jiangsu Seagull i.e., Jiangsu Seagull and Shanghai Zhangjiang go up and down completely randomly.
Pair Corralation between Jiangsu Seagull and Shanghai Zhangjiang
Assuming the 90 days trading horizon Jiangsu Seagull Cooling is expected to under-perform the Shanghai Zhangjiang. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Seagull Cooling is 1.85 times less risky than Shanghai Zhangjiang. The stock trades about -0.03 of its potential returns per unit of risk. The Shanghai Zhangjiang Hi Tech is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,625 in Shanghai Zhangjiang Hi Tech on August 25, 2024 and sell it today you would earn a total of 244.00 from holding Shanghai Zhangjiang Hi Tech or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Seagull Cooling vs. Shanghai Zhangjiang Hi Tech
Performance |
| Timeline |
| Jiangsu Seagull Cooling |
| Shanghai Zhangjiang |
Jiangsu Seagull and Shanghai Zhangjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Seagull and Shanghai Zhangjiang
The main advantage of trading using opposite Jiangsu Seagull and Shanghai Zhangjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Seagull position performs unexpectedly, Shanghai Zhangjiang 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 Shanghai Zhangjiang will offset losses from the drop in Shanghai Zhangjiang's long position.| Jiangsu Seagull vs. Guangzhou Haige Communications | Jiangsu Seagull vs. Inspur Software Co | Jiangsu Seagull vs. Peoples Insurance of | Jiangsu Seagull vs. Allwin Telecommunication Co |
| Shanghai Zhangjiang vs. Industrial and Commercial | Shanghai Zhangjiang vs. China Construction Bank | Shanghai Zhangjiang vs. Bank of China | Shanghai Zhangjiang vs. Agricultural Bank of |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |