Correlation Between Suzhou Weizhixiang and Jiangsu Jinling
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Suzhou Weizhixiang and Jiangsu Jinling 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 Suzhou Weizhixiang with a short position of Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Jiangsu Jinling.
Diversification Opportunities for Suzhou Weizhixiang and Jiangsu Jinling
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Jiangsu is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports and Suzhou Weizhixiang 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 Suzhou Weizhixiang Food are associated (or correlated) with Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Jiangsu Jinling
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to under-perform the Jiangsu Jinling. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Weizhixiang Food is 1.43 times less risky than Jiangsu Jinling. The stock trades about -0.45 of its potential returns per unit of risk. The Jiangsu Jinling Sports is currently generating about -0.28 of returns per unit of risk over similar time horizon. If you would invest 1,551 in Jiangsu Jinling Sports on October 14, 2024 and sell it today you would lose (386.00) from holding Jiangsu Jinling Sports or give up 24.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Jiangsu Jinling Sports |
Suzhou Weizhixiang and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Jiangsu Jinling
The main advantage of trading using opposite Suzhou Weizhixiang and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang position performs unexpectedly, Jiangsu Jinling 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 Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Suzhou Weizhixiang vs. Industrial and Commercial | Suzhou Weizhixiang vs. Agricultural Bank of | Suzhou Weizhixiang vs. China Construction Bank | Suzhou Weizhixiang vs. Bank of China |
| Jiangsu Jinling vs. Jiangsu Financial Leasing | Jiangsu Jinling vs. Sichuan Teway Food | Jiangsu Jinling vs. Suzhou Weizhixiang Food | Jiangsu Jinling vs. Tonghua Grape Wine |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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