Correlation Between RoadMain T and Jiangsu Broadcasting
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By analyzing existing cross correlation between RoadMain T Co and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on RoadMain T and Jiangsu Broadcasting 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 RoadMain T with a short position of Jiangsu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of RoadMain T and Jiangsu Broadcasting.
Diversification Opportunities for RoadMain T and Jiangsu Broadcasting
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between RoadMain and Jiangsu is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding RoadMain T Co and Jiangsu Broadcasting Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Broadcasting and RoadMain T 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 RoadMain T Co are associated (or correlated) with Jiangsu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Broadcasting has no effect on the direction of RoadMain T i.e., RoadMain T and Jiangsu Broadcasting go up and down completely randomly.
Pair Corralation between RoadMain T and Jiangsu Broadcasting
Assuming the 90 days trading horizon RoadMain T Co is expected to generate 2.0 times more return on investment than Jiangsu Broadcasting. However, RoadMain T is 2.0 times more volatile than Jiangsu Broadcasting Cable. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Broadcasting Cable is currently generating about 0.02 per unit of risk. If you would invest 2,675 in RoadMain T Co on August 27, 2024 and sell it today you would earn a total of 385.00 from holding RoadMain T Co or generate 14.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
RoadMain T Co vs. Jiangsu Broadcasting Cable
Performance |
| Timeline |
| RoadMain T |
| Jiangsu Broadcasting |
RoadMain T and Jiangsu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RoadMain T and Jiangsu Broadcasting
The main advantage of trading using opposite RoadMain T and Jiangsu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RoadMain T position performs unexpectedly, Jiangsu Broadcasting 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 Jiangsu Broadcasting will offset losses from the drop in Jiangsu Broadcasting's long position.| RoadMain T vs. Agricultural Bank of | RoadMain T vs. Industrial and Commercial | RoadMain T vs. Bank of China | RoadMain T vs. China Construction Bank |
| Jiangsu Broadcasting vs. Industrial and Commercial | Jiangsu Broadcasting vs. Agricultural Bank of | Jiangsu Broadcasting vs. China Construction Bank | Jiangsu Broadcasting vs. Bank of China |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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