Correlation Between Safe and Jiangsu Expressway
Can any of the company-specific risk be diversified away by investing in both Safe and Jiangsu Expressway at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Safe and Jiangsu Expressway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safe and Green and Jiangsu Expressway, you can compare the effects of market volatilities on Safe and Jiangsu Expressway 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 Safe with a short position of Jiangsu Expressway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safe and Jiangsu Expressway.
Diversification Opportunities for Safe and Jiangsu Expressway
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Safe and Jiangsu is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Safe and Green and Jiangsu Expressway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Expressway and Safe 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 Safe and Green are associated (or correlated) with Jiangsu Expressway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Expressway has no effect on the direction of Safe i.e., Safe and Jiangsu Expressway go up and down completely randomly.
Pair Corralation between Safe and Jiangsu Expressway
Considering the 90-day investment horizon Safe and Green is expected to under-perform the Jiangsu Expressway. In addition to that, Safe is 2.74 times more volatile than Jiangsu Expressway. It trades about -0.12 of its total potential returns per unit of risk. Jiangsu Expressway is currently generating about -0.02 per unit of volatility. If you would invest 110.00 in Jiangsu Expressway on September 1, 2024 and sell it today you would lose (12.00) from holding Jiangsu Expressway or give up 10.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safe and Green vs. Jiangsu Expressway
Performance |
| Timeline |
| Safe and Green |
| Jiangsu Expressway |
Safe and Jiangsu Expressway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safe and Jiangsu Expressway
The main advantage of trading using opposite Safe and Jiangsu Expressway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safe position performs unexpectedly, Jiangsu Expressway 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 Expressway will offset losses from the drop in Jiangsu Expressway's long position.| Safe vs. Re Max Holding | Safe vs. Marcus Millichap | Safe vs. Frp Holdings Ord | Safe vs. Maui Land Pineapple |
| Jiangsu Expressway vs. Xunlei Ltd Adr | Jiangsu Expressway vs. Summit Materials | Jiangsu Expressway vs. Deluxe | Jiangsu Expressway vs. Marchex |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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