Correlation Between Zhongtong Guomai and Jiangsu Jinling
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Zhongtong Guomai and Jiangsu Jinling 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 Zhongtong Guomai with a short position of Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Jiangsu Jinling.
Diversification Opportunities for Zhongtong Guomai and Jiangsu Jinling
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and Jiangsu is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports and Zhongtong Guomai 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 Zhongtong Guomai Communication are associated (or correlated) with Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Jiangsu Jinling
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 1.07 times more return on investment than Jiangsu Jinling. However, Zhongtong Guomai is 1.07 times more volatile than Jiangsu Jinling Sports. It trades about 0.01 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about -0.02 per unit of risk. If you would invest 1,246 in Zhongtong Guomai Communication on September 3, 2024 and sell it today you would lose (125.00) from holding Zhongtong Guomai Communication or give up 10.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Jiangsu Jinling Sports |
Zhongtong Guomai and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Jiangsu Jinling
The main advantage of trading using opposite Zhongtong Guomai and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Zhongtong Guomai vs. Agricultural Bank of | Zhongtong Guomai vs. China Construction Bank | Zhongtong Guomai vs. Postal Savings Bank | Zhongtong Guomai vs. Bank of Communications |
| Jiangsu Jinling vs. PetroChina Co Ltd | Jiangsu Jinling vs. China Mobile Limited | Jiangsu Jinling vs. Industrial and Commercial | Jiangsu Jinling vs. China Life Insurance |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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