Correlation Between Jiangsu Pacific and Shenzhen Transsion
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By analyzing existing cross correlation between Jiangsu Pacific Quartz and Shenzhen Transsion Holdings, you can compare the effects of market volatilities on Jiangsu Pacific and Shenzhen Transsion 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 Transsion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Pacific and Shenzhen Transsion.
Diversification Opportunities for Jiangsu Pacific and Shenzhen Transsion
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Shenzhen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Pacific Quartz and Shenzhen Transsion Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Transsion 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 Transsion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Transsion has no effect on the direction of Jiangsu Pacific i.e., Jiangsu Pacific and Shenzhen Transsion go up and down completely randomly.
Pair Corralation between Jiangsu Pacific and Shenzhen Transsion
Assuming the 90 days trading horizon Jiangsu Pacific Quartz is expected to under-perform the Shenzhen Transsion. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Pacific Quartz is 1.03 times less risky than Shenzhen Transsion. The stock trades about -0.07 of its potential returns per unit of risk. The Shenzhen Transsion Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 8,117 in Shenzhen Transsion Holdings on August 30, 2024 and sell it today you would earn a total of 318.00 from holding Shenzhen Transsion Holdings or generate 3.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Pacific Quartz vs. Shenzhen Transsion Holdings
Performance |
Timeline |
Jiangsu Pacific Quartz |
Shenzhen Transsion |
Jiangsu Pacific and Shenzhen Transsion Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Pacific and Shenzhen Transsion
The main advantage of trading using opposite Jiangsu Pacific and Shenzhen Transsion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Pacific position performs unexpectedly, Shenzhen Transsion 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 Transsion will offset losses from the drop in Shenzhen Transsion's long position.Jiangsu Pacific vs. Guangzhou KingTeller Technology | Jiangsu Pacific vs. Chengdu Xingrong Investment | Jiangsu Pacific vs. Western Superconducting Tech | Jiangsu Pacific vs. Hunan Investment Group |
Shenzhen Transsion vs. Keeson Technology Corp | Shenzhen Transsion vs. Holitech Technology Co | Shenzhen Transsion vs. Qingdao NovelBeam Technology | Shenzhen Transsion vs. Ye Chiu Metal |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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