Correlation Between Zhongtong Guomai and Jiangsu Yike
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Jiangsu Yike Food, you can compare the effects of market volatilities on Zhongtong Guomai and Jiangsu Yike 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 Yike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Jiangsu Yike.
Diversification Opportunities for Zhongtong Guomai and Jiangsu Yike
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and Jiangsu is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Jiangsu Yike Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yike Food 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 Yike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yike Food has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Jiangsu Yike go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Jiangsu Yike
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 1.01 times more return on investment than Jiangsu Yike. However, Zhongtong Guomai is 1.01 times more volatile than Jiangsu Yike Food. It trades about 0.06 of its potential returns per unit of risk. Jiangsu Yike Food is currently generating about 0.02 per unit of risk. If you would invest 685.00 in Zhongtong Guomai Communication on September 12, 2024 and sell it today you would earn a total of 446.00 from holding Zhongtong Guomai Communication or generate 65.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Jiangsu Yike Food
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Jiangsu Yike Food |
Zhongtong Guomai and Jiangsu Yike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Jiangsu Yike
The main advantage of trading using opposite Zhongtong Guomai and Jiangsu Yike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Jiangsu Yike 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 Yike will offset losses from the drop in Jiangsu Yike's long position.| Zhongtong Guomai vs. Gansu Jiu Steel | Zhongtong Guomai vs. Shandong Mining Machinery | Zhongtong Guomai vs. Aba Chemicals Corp | Zhongtong Guomai vs. BlueFocus Communication Group |
| Jiangsu Yike vs. Shenzhen Clou Electronics | Jiangsu Yike vs. Allwin Telecommunication Co | Jiangsu Yike vs. Zhongtong Guomai Communication | Jiangsu Yike vs. Tianjin Hi Tech Development |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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