Correlation Between Jiangsu Xinri and Beijing Shanghai
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By analyzing existing cross correlation between Jiangsu Xinri E Vehicle and Beijing Shanghai High Speed, you can compare the effects of market volatilities on Jiangsu Xinri and Beijing Shanghai 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 Beijing Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinri and Beijing Shanghai.
Diversification Opportunities for Jiangsu Xinri and Beijing Shanghai
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Beijing is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinri E Vehicle and Beijing Shanghai High Speed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shanghai High 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 Beijing Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shanghai High has no effect on the direction of Jiangsu Xinri i.e., Jiangsu Xinri and Beijing Shanghai go up and down completely randomly.
Pair Corralation between Jiangsu Xinri and Beijing Shanghai
Assuming the 90 days trading horizon Jiangsu Xinri is expected to generate 2.18 times less return on investment than Beijing Shanghai. In addition to that, Jiangsu Xinri is 1.16 times more volatile than Beijing Shanghai High Speed. It trades about 0.12 of its total potential returns per unit of risk. Beijing Shanghai High Speed is currently generating about 0.3 per unit of volatility. If you would invest 559.00 in Beijing Shanghai High Speed on September 12, 2024 and sell it today you would earn a total of 63.00 from holding Beijing Shanghai High Speed or generate 11.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinri E Vehicle vs. Beijing Shanghai High Speed
Performance |
| Timeline |
| Jiangsu Xinri E |
| Beijing Shanghai High |
Jiangsu Xinri and Beijing Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinri and Beijing Shanghai
The main advantage of trading using opposite Jiangsu Xinri and Beijing Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinri position performs unexpectedly, Beijing Shanghai 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 Beijing Shanghai will offset losses from the drop in Beijing Shanghai's long position.| Jiangsu Xinri vs. Lutian Machinery Co | Jiangsu Xinri vs. PetroChina Co Ltd | Jiangsu Xinri vs. Bank of China | Jiangsu Xinri vs. Gansu Jiu Steel |
| Beijing Shanghai vs. China Railway Construction | Beijing Shanghai vs. Qijing Machinery | Beijing Shanghai vs. Sichuan Yahua Industrial | Beijing Shanghai vs. Huitong Construction Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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