Correlation Between Jiangsu Xinri and Shandong Publishing
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By analyzing existing cross correlation between Jiangsu Xinri E Vehicle and Shandong Publishing Media, you can compare the effects of market volatilities on Jiangsu Xinri and Shandong Publishing 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 Xinri with a short position of Shandong Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinri and Shandong Publishing.
Diversification Opportunities for Jiangsu Xinri and Shandong Publishing
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jiangsu and Shandong is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinri E Vehicle and Shandong Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Publishing Media and Jiangsu Xinri 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 Xinri E Vehicle are associated (or correlated) with Shandong Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Publishing Media has no effect on the direction of Jiangsu Xinri i.e., Jiangsu Xinri and Shandong Publishing go up and down completely randomly.
Pair Corralation between Jiangsu Xinri and Shandong Publishing
Assuming the 90 days trading horizon Jiangsu Xinri E Vehicle is expected to generate 1.42 times more return on investment than Shandong Publishing. However, Jiangsu Xinri is 1.42 times more volatile than Shandong Publishing Media. It trades about -0.03 of its potential returns per unit of risk. Shandong Publishing Media is currently generating about -0.28 per unit of risk. If you would invest 1,124 in Jiangsu Xinri E Vehicle on August 28, 2024 and sell it today you would lose (24.00) from holding Jiangsu Xinri E Vehicle or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinri E Vehicle vs. Shandong Publishing Media
Performance |
| Timeline |
| Jiangsu Xinri E |
| Shandong Publishing Media |
Jiangsu Xinri and Shandong Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinri and Shandong Publishing
The main advantage of trading using opposite Jiangsu Xinri and Shandong Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinri position performs unexpectedly, Shandong Publishing 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 Shandong Publishing will offset losses from the drop in Shandong Publishing's long position.| Jiangsu Xinri vs. Shenzhen MYS Environmental | Jiangsu Xinri vs. AVIC Fund Management | Jiangsu Xinri vs. Shenzhen Bingchuan Network | Jiangsu Xinri vs. Penghua Shenzhen Energy |
| Shandong Publishing vs. China State Construction | Shandong Publishing vs. Huafa Industrial Co | Shandong Publishing vs. China International Capital | Shandong Publishing vs. Kweichow Moutai 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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