Correlation Between Nanjing Vishee and Jiangsu Yueda
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By analyzing existing cross correlation between Nanjing Vishee Medical and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Nanjing Vishee and Jiangsu Yueda 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 Nanjing Vishee with a short position of Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Vishee and Jiangsu Yueda.
Diversification Opportunities for Nanjing Vishee and Jiangsu Yueda
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Jiangsu is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Vishee Medical and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment and Nanjing Vishee 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 Nanjing Vishee Medical are associated (or correlated) with Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Nanjing Vishee i.e., Nanjing Vishee and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Nanjing Vishee and Jiangsu Yueda
Assuming the 90 days trading horizon Nanjing Vishee Medical is expected to under-perform the Jiangsu Yueda. In addition to that, Nanjing Vishee is 1.25 times more volatile than Jiangsu Yueda Investment. It trades about -0.06 of its total potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about -0.02 per unit of volatility. If you would invest 542.00 in Jiangsu Yueda Investment on October 16, 2024 and sell it today you would lose (122.00) from holding Jiangsu Yueda Investment or give up 22.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Vishee Medical vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Nanjing Vishee Medical |
| Jiangsu Yueda Investment |
Nanjing Vishee and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Vishee and Jiangsu Yueda
The main advantage of trading using opposite Nanjing Vishee and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Vishee position performs unexpectedly, Jiangsu Yueda 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 Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Nanjing Vishee vs. Jilin Jlu Communication | Nanjing Vishee vs. Chengdu Xinzhu RoadBridge | Nanjing Vishee vs. Zhengping RoadBridge Constr | Nanjing Vishee vs. TianJin 712 Communication |
| Jiangsu Yueda vs. Bangyan Technology Co | Jiangsu Yueda vs. Guangzhou Zhujiang Brewery | Jiangsu Yueda vs. Montage Technology Co | Jiangsu Yueda vs. Kingsignal Technology Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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