Correlation Between Jiangsu Leadmicro and Shandong Sinoglory
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By analyzing existing cross correlation between Jiangsu Leadmicro Nano and Shandong Sinoglory Health, you can compare the effects of market volatilities on Jiangsu Leadmicro and Shandong Sinoglory 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 Jiangsu Leadmicro with a short position of Shandong Sinoglory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Leadmicro and Shandong Sinoglory.
Diversification Opportunities for Jiangsu Leadmicro and Shandong Sinoglory
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Shandong is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Leadmicro Nano and Shandong Sinoglory Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinoglory Health and Jiangsu Leadmicro 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 Jiangsu Leadmicro Nano are associated (or correlated) with Shandong Sinoglory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinoglory Health has no effect on the direction of Jiangsu Leadmicro i.e., Jiangsu Leadmicro and Shandong Sinoglory go up and down completely randomly.
Pair Corralation between Jiangsu Leadmicro and Shandong Sinoglory
Assuming the 90 days trading horizon Jiangsu Leadmicro Nano is expected to generate 1.85 times more return on investment than Shandong Sinoglory. However, Jiangsu Leadmicro is 1.85 times more volatile than Shandong Sinoglory Health. It trades about 0.02 of its potential returns per unit of risk. Shandong Sinoglory Health is currently generating about -0.03 per unit of risk. If you would invest 2,736 in Jiangsu Leadmicro Nano on September 2, 2024 and sell it today you would earn a total of 245.00 from holding Jiangsu Leadmicro Nano or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.12% |
| Values | Daily Returns |
Jiangsu Leadmicro Nano vs. Shandong Sinoglory Health
Performance |
| Timeline |
| Jiangsu Leadmicro Nano |
| Shandong Sinoglory Health |
Jiangsu Leadmicro and Shandong Sinoglory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Leadmicro and Shandong Sinoglory
The main advantage of trading using opposite Jiangsu Leadmicro and Shandong Sinoglory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Leadmicro position performs unexpectedly, Shandong Sinoglory 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 Shandong Sinoglory will offset losses from the drop in Shandong Sinoglory's long position.| Jiangsu Leadmicro vs. New China Life | Jiangsu Leadmicro vs. Ming Yang Smart | Jiangsu Leadmicro vs. 159681 | Jiangsu Leadmicro vs. 159005 |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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