Correlation Between Shanghai CEO and Jiangsu Xinning
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai CEO Environmental and Jiangsu Xinning Modern, you can compare the effects of market volatilities on Shanghai CEO and Jiangsu Xinning 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 CEO with a short position of Jiangsu Xinning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai CEO and Jiangsu Xinning.
Diversification Opportunities for Shanghai CEO and Jiangsu Xinning
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Jiangsu is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai CEO Environmental and Jiangsu Xinning Modern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinning Modern and Shanghai CEO 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 CEO Environmental are associated (or correlated) with Jiangsu Xinning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinning Modern has no effect on the direction of Shanghai CEO i.e., Shanghai CEO and Jiangsu Xinning go up and down completely randomly.
Pair Corralation between Shanghai CEO and Jiangsu Xinning
Assuming the 90 days trading horizon Shanghai CEO Environmental is expected to generate 11.65 times more return on investment than Jiangsu Xinning. However, Shanghai CEO is 11.65 times more volatile than Jiangsu Xinning Modern. It trades about 0.04 of its potential returns per unit of risk. Jiangsu Xinning Modern is currently generating about 0.0 per unit of risk. If you would invest 2,186 in Shanghai CEO Environmental on August 29, 2024 and sell it today you would lose (1,219) from holding Shanghai CEO Environmental or give up 55.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai CEO Environmental vs. Jiangsu Xinning Modern
Performance |
| Timeline |
| Shanghai CEO Environ |
| Jiangsu Xinning Modern |
Shanghai CEO and Jiangsu Xinning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai CEO and Jiangsu Xinning
The main advantage of trading using opposite Shanghai CEO and Jiangsu Xinning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai CEO position performs unexpectedly, Jiangsu Xinning 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 Jiangsu Xinning will offset losses from the drop in Jiangsu Xinning's long position.| Shanghai CEO vs. Kweichow Moutai Co | Shanghai CEO vs. Shenzhen Mindray Bio Medical | Shanghai CEO vs. G bits Network Technology | Shanghai CEO vs. Shenzhen Transsion Holdings |
| Jiangsu Xinning vs. China Life Insurance | Jiangsu Xinning vs. Piotech Inc A | Jiangsu Xinning vs. Dongxing Sec Co | Jiangsu Xinning vs. Shanghai OPM Biosciences |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |