Correlation Between Jingjin Environmental and Suzhou Xingye
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By analyzing existing cross correlation between Jingjin Environmental Protection and Suzhou Xingye Material, you can compare the effects of market volatilities on Jingjin Environmental and Suzhou Xingye 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 Jingjin Environmental with a short position of Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jingjin Environmental and Suzhou Xingye.
Diversification Opportunities for Jingjin Environmental and Suzhou Xingye
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jingjin and Suzhou is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jingjin Environmental Protecti and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material and Jingjin Environmental 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 Jingjin Environmental Protection are associated (or correlated) with Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Jingjin Environmental i.e., Jingjin Environmental and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Jingjin Environmental and Suzhou Xingye
Assuming the 90 days trading horizon Jingjin Environmental Protection is expected to under-perform the Suzhou Xingye. But the stock apears to be less risky and, when comparing its historical volatility, Jingjin Environmental Protection is 1.44 times less risky than Suzhou Xingye. The stock trades about -0.07 of its potential returns per unit of risk. The Suzhou Xingye Material is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,013 in Suzhou Xingye Material on September 13, 2024 and sell it today you would lose (20.00) from holding Suzhou Xingye Material or give up 1.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jingjin Environmental Protecti vs. Suzhou Xingye Material
Performance |
| Timeline |
| Jingjin Environmental |
| Suzhou Xingye Material |
Jingjin Environmental and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jingjin Environmental and Suzhou Xingye
The main advantage of trading using opposite Jingjin Environmental and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jingjin Environmental position performs unexpectedly, Suzhou Xingye 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 Suzhou Xingye will offset losses from the drop in Suzhou Xingye's long position.| Jingjin Environmental vs. Ligao Foods CoLtd | Jingjin Environmental vs. Shandong Homey Aquatic | Jingjin Environmental vs. Der International Home | Jingjin Environmental vs. Mengtian Home Group |
| Suzhou Xingye vs. Zijin Mining Group | Suzhou Xingye vs. Wanhua Chemical Group | Suzhou Xingye vs. Baoshan Iron Steel | Suzhou Xingye vs. Shandong Gold Mining |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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