Correlation Between Shanghai Yaoji and Jiangnan Mould
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Jiangnan Mould Plastic, you can compare the effects of market volatilities on Shanghai Yaoji and Jiangnan Mould 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 Yaoji with a short position of Jiangnan Mould. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Jiangnan Mould.
Diversification Opportunities for Shanghai Yaoji and Jiangnan Mould
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Jiangnan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing and Jiangnan Mould Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangnan Mould Plastic and Shanghai Yaoji 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 Yaoji Playing are associated (or correlated) with Jiangnan Mould. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangnan Mould Plastic has no effect on the direction of Shanghai Yaoji i.e., Shanghai Yaoji and Jiangnan Mould go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Jiangnan Mould
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to generate 1.28 times more return on investment than Jiangnan Mould. However, Shanghai Yaoji is 1.28 times more volatile than Jiangnan Mould Plastic. It trades about 0.04 of its potential returns per unit of risk. Jiangnan Mould Plastic is currently generating about 0.03 per unit of risk. If you would invest 2,073 in Shanghai Yaoji Playing on October 9, 2024 and sell it today you would earn a total of 386.00 from holding Shanghai Yaoji Playing or generate 18.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Yaoji Playing vs. Jiangnan Mould Plastic
Performance |
Timeline |
Shanghai Yaoji Playing |
Jiangnan Mould Plastic |
Shanghai Yaoji and Jiangnan Mould Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Yaoji and Jiangnan Mould
The main advantage of trading using opposite Shanghai Yaoji and Jiangnan Mould positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji position performs unexpectedly, Jiangnan Mould 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 Jiangnan Mould will offset losses from the drop in Jiangnan Mould's long position.Shanghai Yaoji vs. Dymatic Chemicals | Shanghai Yaoji vs. Shenzhen Topway Video | Shanghai Yaoji vs. Zhangjiagang Freetrade Science | Shanghai Yaoji vs. Porton Fine Chemicals |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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