Correlation Between Jiangsu Jinling and Tianshui Huatian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Jinling Sports and Tianshui Huatian Technology, you can compare the effects of market volatilities on Jiangsu Jinling and Tianshui Huatian 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 Jiangsu Jinling with a short position of Tianshui Huatian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Tianshui Huatian.
Diversification Opportunities for Jiangsu Jinling and Tianshui Huatian
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Tianshui is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Tianshui Huatian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshui Huatian Tec and Jiangsu Jinling 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 Jiangsu Jinling Sports are associated (or correlated) with Tianshui Huatian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshui Huatian Tec has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Tianshui Huatian go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Tianshui Huatian
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to under-perform the Tianshui Huatian. In addition to that, Jiangsu Jinling is 3.77 times more volatile than Tianshui Huatian Technology. It trades about -0.02 of its total potential returns per unit of risk. Tianshui Huatian Technology is currently generating about 0.09 per unit of volatility. If you would invest 1,166 in Tianshui Huatian Technology on September 24, 2024 and sell it today you would earn a total of 27.00 from holding Tianshui Huatian Technology or generate 2.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Jinling Sports vs. Tianshui Huatian Technology
Performance |
Timeline |
Jiangsu Jinling Sports |
Tianshui Huatian Tec |
Jiangsu Jinling and Tianshui Huatian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Jinling and Tianshui Huatian
The main advantage of trading using opposite Jiangsu Jinling and Tianshui Huatian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Tianshui Huatian 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 Tianshui Huatian will offset losses from the drop in Tianshui Huatian's long position.Jiangsu Jinling vs. PetroChina Co Ltd | Jiangsu Jinling vs. China Mobile Limited | Jiangsu Jinling vs. CNOOC Limited | Jiangsu Jinling vs. Ping An Insurance |
Tianshui Huatian vs. Jiangsu Jinling Sports | Tianshui Huatian vs. Changchun UP Optotech | Tianshui Huatian vs. Chongqing Brewery Co | Tianshui Huatian vs. Olympic Circuit Technology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Stocks Directory Find actively traded stocks across global markets | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |