Correlation Between Jiangsu Pacific and Nantong Haixing
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By analyzing existing cross correlation between Jiangsu Pacific Quartz and Nantong Haixing Electronics, you can compare the effects of market volatilities on Jiangsu Pacific and Nantong Haixing 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 Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Pacific and Nantong Haixing.
Diversification Opportunities for Jiangsu Pacific and Nantong Haixing
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Nantong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Pacific Quartz and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec 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 Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of Jiangsu Pacific i.e., Jiangsu Pacific and Nantong Haixing go up and down completely randomly.
Pair Corralation between Jiangsu Pacific and Nantong Haixing
Assuming the 90 days trading horizon Jiangsu Pacific Quartz is expected to under-perform the Nantong Haixing. In addition to that, Jiangsu Pacific is 1.65 times more volatile than Nantong Haixing Electronics. It trades about -0.08 of its total potential returns per unit of risk. Nantong Haixing Electronics is currently generating about 0.01 per unit of volatility. If you would invest 1,350 in Nantong Haixing Electronics on August 29, 2024 and sell it today you would lose (1.00) from holding Nantong Haixing Electronics or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Pacific Quartz vs. Nantong Haixing Electronics
Performance |
| Timeline |
| Jiangsu Pacific Quartz |
| Nantong Haixing Elec |
Jiangsu Pacific and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Pacific and Nantong Haixing
The main advantage of trading using opposite Jiangsu Pacific and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Pacific position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing's long position.| Jiangsu Pacific vs. Lutian Machinery Co | Jiangsu Pacific vs. China Longyuan Power | Jiangsu Pacific vs. Changshu Tongrun Auto | Jiangsu Pacific vs. PetroChina Co Ltd |
| Nantong Haixing vs. Kweichow Moutai Co | Nantong Haixing vs. Shenzhen Mindray Bio Medical | Nantong Haixing vs. Jiangsu Pacific Quartz | Nantong Haixing vs. G bits Network Technology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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