Correlation Between Shanghai Action and Jiangxi Hengda
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By analyzing existing cross correlation between Shanghai Action Education and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Shanghai Action and Jiangxi Hengda 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 Shanghai Action with a short position of Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and Jiangxi Hengda.
Diversification Opportunities for Shanghai Action and Jiangxi Hengda
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and Jiangxi is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi and Shanghai Action 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 Shanghai Action Education are associated (or correlated) with Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Shanghai Action i.e., Shanghai Action and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Shanghai Action and Jiangxi Hengda
Assuming the 90 days trading horizon Shanghai Action Education is expected to generate 0.49 times more return on investment than Jiangxi Hengda. However, Shanghai Action Education is 2.03 times less risky than Jiangxi Hengda. It trades about -0.07 of its potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about -0.21 per unit of risk. If you would invest 3,711 in Shanghai Action Education on October 17, 2024 and sell it today you would lose (160.00) from holding Shanghai Action Education or give up 4.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Action Education vs. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Shanghai Action Education |
| Jiangxi Hengda Hi |
Shanghai Action and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Action and Jiangxi Hengda
The main advantage of trading using opposite Shanghai Action and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.| Shanghai Action vs. Xiangyu Medical Co | Shanghai Action vs. Guangdong Jingyi Metal | Shanghai Action vs. Winner Medical Co | Shanghai Action vs. Rising Nonferrous Metals |
| Jiangxi Hengda vs. Shanghai Action Education | Jiangxi Hengda vs. Gansu Jiu Steel | Jiangxi Hengda vs. Heilongjiang Publishing Media | Jiangxi Hengda vs. Eit Environmental Development |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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