Correlation Between Shanghai Action and JCET Group
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By analyzing existing cross correlation between Shanghai Action Education and JCET Group Co, you can compare the effects of market volatilities on Shanghai Action and JCET Group 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 JCET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and JCET Group.
Diversification Opportunities for Shanghai Action and JCET Group
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and JCET is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education and JCET Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCET Group 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 JCET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCET Group has no effect on the direction of Shanghai Action i.e., Shanghai Action and JCET Group go up and down completely randomly.
Pair Corralation between Shanghai Action and JCET Group
Assuming the 90 days trading horizon Shanghai Action Education is expected to under-perform the JCET Group. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Action Education is 1.49 times less risky than JCET Group. The stock trades about -0.07 of its potential returns per unit of risk. The JCET Group Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,784 in JCET Group Co on October 17, 2024 and sell it today you would earn a total of 215.00 from holding JCET Group Co or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Action Education vs. JCET Group Co
Performance |
| Timeline |
| Shanghai Action Education |
| JCET Group |
Shanghai Action and JCET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Action and JCET Group
The main advantage of trading using opposite Shanghai Action and JCET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action position performs unexpectedly, JCET Group 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 JCET Group will offset losses from the drop in JCET Group'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 |
| JCET Group vs. Shanghai Action Education | JCET Group vs. Anji Foodstuff Co | JCET Group vs. Northern United Publishing | JCET Group vs. Heilongjiang Publishing Media |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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