Correlation Between Shanghai CEO and Jiangsu Jinling
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By analyzing existing cross correlation between Shanghai CEO Environmental and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Shanghai CEO and Jiangsu Jinling 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 Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai CEO and Jiangsu Jinling.
Diversification Opportunities for Shanghai CEO and Jiangsu Jinling
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Jiangsu is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai CEO Environmental and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Shanghai CEO i.e., Shanghai CEO and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Shanghai CEO and Jiangsu Jinling
Assuming the 90 days trading horizon Shanghai CEO Environmental is expected to generate 0.79 times more return on investment than Jiangsu Jinling. However, Shanghai CEO Environmental is 1.27 times less risky than Jiangsu Jinling. It trades about 0.04 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about 0.0 per unit of risk. If you would invest 786.00 in Shanghai CEO Environmental on October 18, 2024 and sell it today you would earn a total of 81.00 from holding Shanghai CEO Environmental or generate 10.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai CEO Environmental vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Shanghai CEO Environ |
| Jiangsu Jinling Sports |
Shanghai CEO and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai CEO and Jiangsu Jinling
The main advantage of trading using opposite Shanghai CEO and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai CEO position performs unexpectedly, Jiangsu Jinling 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 Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Shanghai CEO vs. Sichuan Teway Food | Shanghai CEO vs. Zhongfu Information | Shanghai CEO vs. Hygon Information Technology | Shanghai CEO vs. Guilin Seamild Foods |
| Jiangsu Jinling vs. Cicc Fund Management | Jiangsu Jinling vs. Shanghai CEO Environmental | Jiangsu Jinling vs. Shenzhen Centralcon Investment | Jiangsu Jinling vs. Chengdu Xingrong Investment |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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