Correlation Between Jiangxi JDL and Beijing Bashi
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By analyzing existing cross correlation between Jiangxi JDL Environmental and Beijing Bashi Media, you can compare the effects of market volatilities on Jiangxi JDL and Beijing Bashi 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 Beijing Bashi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi JDL and Beijing Bashi.
Diversification Opportunities for Jiangxi JDL and Beijing Bashi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Beijing is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi JDL Environmental and Beijing Bashi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bashi Media 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 Beijing Bashi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bashi Media has no effect on the direction of Jiangxi JDL i.e., Jiangxi JDL and Beijing Bashi go up and down completely randomly.
Pair Corralation between Jiangxi JDL and Beijing Bashi
Assuming the 90 days trading horizon Jiangxi JDL is expected to generate 1.64 times less return on investment than Beijing Bashi. But when comparing it to its historical volatility, Jiangxi JDL Environmental is 1.29 times less risky than Beijing Bashi. It trades about 0.18 of its potential returns per unit of risk. Beijing Bashi Media is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 322.00 in Beijing Bashi Media on September 12, 2024 and sell it today you would earn a total of 179.00 from holding Beijing Bashi Media or generate 55.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi JDL Environmental vs. Beijing Bashi Media
Performance |
| Timeline |
| Jiangxi JDL Environmental |
| Beijing Bashi Media |
Jiangxi JDL and Beijing Bashi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi JDL and Beijing Bashi
The main advantage of trading using opposite Jiangxi JDL and Beijing Bashi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi JDL position performs unexpectedly, Beijing Bashi 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 Beijing Bashi will offset losses from the drop in Beijing Bashi'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 |
| Beijing Bashi vs. Ming Yang Smart | Beijing Bashi vs. 159681 | Beijing Bashi vs. 159005 | Beijing Bashi vs. Loctek Ergonomic Technology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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