Correlation Between Jiangxi JDL and Jiujiang Shanshui
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By analyzing existing cross correlation between Jiangxi JDL Environmental and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Jiangxi JDL and Jiujiang Shanshui 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 Jiangxi JDL with a short position of Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi JDL and Jiujiang Shanshui.
Diversification Opportunities for Jiangxi JDL and Jiujiang Shanshui
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Jiujiang is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi JDL Environmental and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui and Jiangxi JDL 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 Jiangxi JDL Environmental are associated (or correlated) with Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Jiangxi JDL i.e., Jiangxi JDL and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Jiangxi JDL and Jiujiang Shanshui
Assuming the 90 days trading horizon Jiangxi JDL is expected to generate 1.51 times less return on investment than Jiujiang Shanshui. But when comparing it to its historical volatility, Jiangxi JDL Environmental is 1.06 times less risky than Jiujiang Shanshui. It trades about 0.11 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,475 in Jiujiang Shanshui Technology on September 13, 2024 and sell it today you would earn a total of 189.00 from holding Jiujiang Shanshui Technology or generate 12.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi JDL Environmental vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Jiangxi JDL Environmental |
| Jiujiang Shanshui |
Jiangxi JDL and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi JDL and Jiujiang Shanshui
The main advantage of trading using opposite Jiangxi JDL and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi JDL position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| Jiangxi JDL vs. Qijing Machinery | Jiangxi JDL vs. Kingclean Electric Co | Jiangxi JDL vs. Gan Yuan Foods | Jiangxi JDL vs. Youyou Foods Co |
| Jiujiang Shanshui vs. Guangzhou Ruoyuchen Information | Jiujiang Shanshui vs. ButOne Information Corp | Jiujiang Shanshui vs. Zhuhai Comleader Information | Jiujiang Shanshui vs. Yangmei Chemical Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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