Correlation Between Jiangsu Seagull and New China
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By analyzing existing cross correlation between Jiangsu Seagull Cooling and New China Life, you can compare the effects of market volatilities on Jiangsu Seagull and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Seagull and New China.
Diversification Opportunities for Jiangsu Seagull and New China
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and New is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Seagull Cooling and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Jiangsu Seagull i.e., Jiangsu Seagull and New China go up and down completely randomly.
Pair Corralation between Jiangsu Seagull and New China
Assuming the 90 days trading horizon Jiangsu Seagull Cooling is expected to under-perform the New China. In addition to that, Jiangsu Seagull is 1.64 times more volatile than New China Life. It trades about -0.01 of its total potential returns per unit of risk. New China Life is currently generating about 0.02 per unit of volatility. If you would invest 4,392 in New China Life on August 26, 2024 and sell it today you would earn a total of 309.00 from holding New China Life or generate 7.04% 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. New China Life
Performance |
| Timeline |
| Jiangsu Seagull Cooling |
| New China Life |
Jiangsu Seagull and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Seagull and New China
The main advantage of trading using opposite Jiangsu Seagull and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Seagull position performs unexpectedly, New China 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 New China will offset losses from the drop in New China'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 |
| New China vs. Chongqing Changan Automobile | New China vs. Hubei Dinglong Chemical | New China vs. Lianhe Chemical Technology | New China vs. Sinomach Automobile 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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