Correlation Between Shanghai Shuixing and JiShi Media
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By analyzing existing cross correlation between Shanghai Shuixing Home and JiShi Media Co, you can compare the effects of market volatilities on Shanghai Shuixing and JiShi Media 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 Shanghai Shuixing with a short position of JiShi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and JiShi Media.
Diversification Opportunities for Shanghai Shuixing and JiShi Media
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and JiShi is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home and JiShi Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JiShi Media and Shanghai Shuixing 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 Shanghai Shuixing Home are associated (or correlated) with JiShi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JiShi Media has no effect on the direction of Shanghai Shuixing i.e., Shanghai Shuixing and JiShi Media go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and JiShi Media
Assuming the 90 days trading horizon Shanghai Shuixing is expected to generate 90.27 times less return on investment than JiShi Media. But when comparing it to its historical volatility, Shanghai Shuixing Home is 1.49 times less risky than JiShi Media. It trades about 0.0 of its potential returns per unit of risk. JiShi Media Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 136.00 in JiShi Media Co on October 12, 2024 and sell it today you would earn a total of 41.00 from holding JiShi Media Co or generate 30.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. JiShi Media Co
Performance |
| Timeline |
| Shanghai Shuixing Home |
| JiShi Media |
Shanghai Shuixing and JiShi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and JiShi Media
The main advantage of trading using opposite Shanghai Shuixing and JiShi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing position performs unexpectedly, JiShi Media 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 JiShi Media will offset losses from the drop in JiShi Media's long position.| Shanghai Shuixing vs. Guangxi Wuzhou Communications | Shanghai Shuixing vs. JuneYao Dairy Co | Shanghai Shuixing vs. Guilin Seamild Foods | Shanghai Shuixing vs. Hangzhou Arcvideo Technology |
| JiShi Media vs. Shanghai Shuixing Home | JiShi Media vs. Allwin Telecommunication Co | JiShi Media vs. Oppein Home Group | JiShi Media vs. Xiamen Goldenhome 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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