Correlation Between Jiangsu Pacific and Andon Health
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By analyzing existing cross correlation between Jiangsu Pacific Quartz and Andon Health Co, you can compare the effects of market volatilities on Jiangsu Pacific and Andon Health 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 Andon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Pacific and Andon Health.
Diversification Opportunities for Jiangsu Pacific and Andon Health
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Andon is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Pacific Quartz and Andon Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andon Health 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 Andon Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andon Health has no effect on the direction of Jiangsu Pacific i.e., Jiangsu Pacific and Andon Health go up and down completely randomly.
Pair Corralation between Jiangsu Pacific and Andon Health
Assuming the 90 days trading horizon Jiangsu Pacific Quartz is expected to generate 1.64 times more return on investment than Andon Health. However, Jiangsu Pacific is 1.64 times more volatile than Andon Health Co. It trades about 0.0 of its potential returns per unit of risk. Andon Health Co is currently generating about -0.15 per unit of risk. If you would invest 2,961 in Jiangsu Pacific Quartz on September 2, 2024 and sell it today you would lose (20.00) from holding Jiangsu Pacific Quartz or give up 0.68% 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. Andon Health Co
Performance |
| Timeline |
| Jiangsu Pacific Quartz |
| Andon Health |
Jiangsu Pacific and Andon Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Pacific and Andon Health
The main advantage of trading using opposite Jiangsu Pacific and Andon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Pacific position performs unexpectedly, Andon Health 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 Andon Health will offset losses from the drop in Andon Health's long position.| Jiangsu Pacific vs. Hongrun Construction Group | Jiangsu Pacific vs. Allied Machinery Co | Jiangsu Pacific vs. Shandong Mining Machinery | Jiangsu Pacific vs. Sinomach General Machinery |
| Andon Health vs. Guizhou Chanhen Chemical | Andon Health vs. Qinghaihuading Industrial Co | Andon Health vs. Shenyang Chemical Industry | Andon Health vs. Do Fluoride Chemicals Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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