Correlation Between Zhongtong Guomai and Jiujiang Shanshui
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Zhongtong Guomai and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Jiujiang Shanshui.
Diversification Opportunities for Zhongtong Guomai and Jiujiang Shanshui
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and Jiujiang is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Jiujiang Shanshui
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 1.33 times more return on investment than Jiujiang Shanshui. However, Zhongtong Guomai is 1.33 times more volatile than Jiujiang Shanshui Technology. It trades about 0.06 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.0 per unit of risk. If you would invest 793.00 in Zhongtong Guomai Communication on September 14, 2024 and sell it today you would earn a total of 361.00 from holding Zhongtong Guomai Communication or generate 45.52% 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. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Jiujiang Shanshui |
Zhongtong Guomai and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Jiujiang Shanshui
The main advantage of trading using opposite Zhongtong Guomai and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| Zhongtong Guomai vs. Fiberhome Telecommunication Technologies | Zhongtong Guomai vs. Kuang Chi Technologies | Zhongtong Guomai vs. Shenwu Energy Saving | Zhongtong Guomai vs. Agricultural Bank of |
| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Wanhua Chemical Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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