Correlation Between Jiangsu Pacific and China Longyuan
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By analyzing existing cross correlation between Jiangsu Pacific Quartz and China Longyuan Power, you can compare the effects of market volatilities on Jiangsu Pacific and China Longyuan 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 Jiangsu Pacific with a short position of China Longyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Pacific and China Longyuan.
Diversification Opportunities for Jiangsu Pacific and China Longyuan
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and China is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Pacific Quartz and China Longyuan Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Longyuan Power and Jiangsu Pacific 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 Jiangsu Pacific Quartz are associated (or correlated) with China Longyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Longyuan Power has no effect on the direction of Jiangsu Pacific i.e., Jiangsu Pacific and China Longyuan go up and down completely randomly.
Pair Corralation between Jiangsu Pacific and China Longyuan
Assuming the 90 days trading horizon Jiangsu Pacific Quartz is expected to under-perform the China Longyuan. In addition to that, Jiangsu Pacific is 1.93 times more volatile than China Longyuan Power. It trades about -0.08 of its total potential returns per unit of risk. China Longyuan Power is currently generating about -0.02 per unit of volatility. If you would invest 2,019 in China Longyuan Power on August 31, 2024 and sell it today you would lose (322.00) from holding China Longyuan Power or give up 15.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Pacific Quartz vs. China Longyuan Power
Performance |
| Timeline |
| Jiangsu Pacific Quartz |
| China Longyuan Power |
Jiangsu Pacific and China Longyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Pacific and China Longyuan
The main advantage of trading using opposite Jiangsu Pacific and China Longyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Pacific position performs unexpectedly, China Longyuan 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 China Longyuan will offset losses from the drop in China Longyuan's long position.| Jiangsu Pacific vs. SUNSEA Telecommunications Co | Jiangsu Pacific vs. Liaoning Chengda Biotechnology | Jiangsu Pacific vs. Shanghai CEO Environmental | Jiangsu Pacific vs. State Grid InformationCommunication |
| China Longyuan vs. Guosheng Financial Holding | China Longyuan vs. Jinhe Biotechnology Co | China Longyuan vs. Shandong Sino Agri United | China Longyuan vs. Postal Savings Bank |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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