Correlation Between Jiangsu Jinling and Guangdong Cellwise
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Guangdong Cellwise Microelectronics, you can compare the effects of market volatilities on Jiangsu Jinling and Guangdong Cellwise 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 Guangdong Cellwise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Guangdong Cellwise.
Diversification Opportunities for Jiangsu Jinling and Guangdong Cellwise
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Guangdong is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Guangdong Cellwise Microelectr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Cellwise 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 Guangdong Cellwise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Cellwise has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Guangdong Cellwise go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Guangdong Cellwise
Assuming the 90 days trading horizon Jiangsu Jinling is expected to generate 140.05 times less return on investment than Guangdong Cellwise. But when comparing it to its historical volatility, Jiangsu Jinling Sports is 1.4 times less risky than Guangdong Cellwise. It trades about 0.0 of its potential returns per unit of risk. Guangdong Cellwise Microelectronics is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,980 in Guangdong Cellwise Microelectronics on September 29, 2024 and sell it today you would earn a total of 1,360 from holding Guangdong Cellwise Microelectronics or generate 34.17% 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. Guangdong Cellwise Microelectr
Performance |
Timeline |
Jiangsu Jinling Sports |
Guangdong Cellwise |
Jiangsu Jinling and Guangdong Cellwise Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Jinling and Guangdong Cellwise
The main advantage of trading using opposite Jiangsu Jinling and Guangdong Cellwise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Guangdong Cellwise 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 Guangdong Cellwise will offset losses from the drop in Guangdong Cellwise's long position.Jiangsu Jinling vs. Quectel Wireless Solutions | Jiangsu Jinling vs. Zhongrun Resources Investment | Jiangsu Jinling vs. Hainan Airlines Co | Jiangsu Jinling vs. Harbin Hatou Investment |
Guangdong Cellwise vs. Kangping Technology Co | Guangdong Cellwise vs. Beijing Seeyon Internet | Guangdong Cellwise vs. Linktel Technologies Co | Guangdong Cellwise vs. Olympic Circuit Technology |
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