Correlation Between Jiangsu Pacific and Shenzhen SDG
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By analyzing existing cross correlation between Jiangsu Pacific Quartz and Shenzhen SDG Service, you can compare the effects of market volatilities on Jiangsu Pacific and Shenzhen SDG 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 Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Pacific and Shenzhen SDG.
Diversification Opportunities for Jiangsu Pacific and Shenzhen SDG
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangsu and Shenzhen is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Pacific Quartz and Shenzhen SDG Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Service 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 Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Service has no effect on the direction of Jiangsu Pacific i.e., Jiangsu Pacific and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Jiangsu Pacific and Shenzhen SDG
Assuming the 90 days trading horizon Jiangsu Pacific Quartz is expected to under-perform the Shenzhen SDG. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Pacific Quartz is 1.41 times less risky than Shenzhen SDG. The stock trades about -0.08 of its potential returns per unit of risk. The Shenzhen SDG Service is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,683 in Shenzhen SDG Service on October 12, 2024 and sell it today you would earn a total of 1,909 from holding Shenzhen SDG Service or generate 71.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jiangsu Pacific Quartz vs. Shenzhen SDG Service
Performance |
| Timeline |
| Jiangsu Pacific Quartz |
| Shenzhen SDG Service |
Jiangsu Pacific and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Pacific and Shenzhen SDG
The main advantage of trading using opposite Jiangsu Pacific and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Pacific position performs unexpectedly, Shenzhen SDG 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 Shenzhen SDG will offset losses from the drop in Shenzhen SDG's long position.| Jiangsu Pacific vs. Ping An Insurance | Jiangsu Pacific vs. Jiangsu Xinri E Vehicle | Jiangsu Pacific vs. Zhejiang Qianjiang Motorcycle | Jiangsu Pacific vs. GRG Banking Equipment |
| Shenzhen SDG vs. Beijing Mainstreets Investment | Shenzhen SDG vs. Cultural Investment Holdings | Shenzhen SDG vs. Postal Savings Bank | Shenzhen SDG vs. Anhui Transport Consulting |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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