Correlation Between Shanghai V and Jiangsu Zhongtian
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By analyzing existing cross correlation between Shanghai V Test Semiconductor and Jiangsu Zhongtian Technology, you can compare the effects of market volatilities on Shanghai V and Jiangsu Zhongtian 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 V with a short position of Jiangsu Zhongtian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai V and Jiangsu Zhongtian.
Diversification Opportunities for Shanghai V and Jiangsu Zhongtian
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Jiangsu is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai V Test Semiconductor and Jiangsu Zhongtian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Zhongtian and Shanghai V 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 V Test Semiconductor are associated (or correlated) with Jiangsu Zhongtian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Zhongtian has no effect on the direction of Shanghai V i.e., Shanghai V and Jiangsu Zhongtian go up and down completely randomly.
Pair Corralation between Shanghai V and Jiangsu Zhongtian
Assuming the 90 days trading horizon Shanghai V Test Semiconductor is expected to generate 1.72 times more return on investment than Jiangsu Zhongtian. However, Shanghai V is 1.72 times more volatile than Jiangsu Zhongtian Technology. It trades about 0.0 of its potential returns per unit of risk. Jiangsu Zhongtian Technology is currently generating about 0.0 per unit of risk. If you would invest 9,614 in Shanghai V Test Semiconductor on October 13, 2024 and sell it today you would lose (3,355) from holding Shanghai V Test Semiconductor or give up 34.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai V Test Semiconductor vs. Jiangsu Zhongtian Technology
Performance |
| Timeline |
| Shanghai V Test |
| Jiangsu Zhongtian |
Shanghai V and Jiangsu Zhongtian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai V and Jiangsu Zhongtian
The main advantage of trading using opposite Shanghai V and Jiangsu Zhongtian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai V position performs unexpectedly, Jiangsu Zhongtian 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 Zhongtian will offset losses from the drop in Jiangsu Zhongtian's long position.| Shanghai V vs. Runjian Communication Co | Shanghai V vs. Haima Automobile Group | Shanghai V vs. Guangxi Wuzhou Communications | Shanghai V vs. Hangzhou Pinming Software |
| Jiangsu Zhongtian vs. Shanghai Yaoji Playing | Jiangsu Zhongtian vs. Sinomach General Machinery | Jiangsu Zhongtian vs. Shannon Semiconductor Technology | Jiangsu Zhongtian vs. Shanghai V Test Semiconductor |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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