Correlation Between Chahua Modern and Jiangsu Jinling
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By analyzing existing cross correlation between Chahua Modern Housewares and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Chahua Modern 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 Chahua Modern with a short position of Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Jiangsu Jinling.
Diversification Opportunities for Chahua Modern and Jiangsu Jinling
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chahua and Jiangsu is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares 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 Chahua Modern 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 Chahua Modern Housewares 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 Chahua Modern i.e., Chahua Modern and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Chahua Modern and Jiangsu Jinling
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to generate 1.15 times more return on investment than Jiangsu Jinling. However, Chahua Modern is 1.15 times more volatile than Jiangsu Jinling Sports. It trades about 0.07 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about -0.05 per unit of risk. If you would invest 927.00 in Chahua Modern Housewares on October 16, 2024 and sell it today you would earn a total of 1,070 from holding Chahua Modern Housewares or generate 115.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Chahua Modern Housewares |
| Jiangsu Jinling Sports |
Chahua Modern and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Jiangsu Jinling
The main advantage of trading using opposite Chahua Modern and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern 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.| Chahua Modern vs. Guilin Seamild Foods | Chahua Modern vs. Youyou Foods Co | Chahua Modern vs. Eastroc Beverage Group | Chahua Modern vs. Anji Foodstuff Co |
| Jiangsu Jinling vs. Jointo Energy Investment | Jiangsu Jinling vs. Zoje Resources Investment | Jiangsu Jinling vs. RoadMain T Co | Jiangsu Jinling vs. Chahua Modern Housewares |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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