Correlation Between ShuYu Civilian and Jiangsu Shuangxing
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By analyzing existing cross correlation between ShuYu Civilian Pharmacy and Jiangsu Shuangxing Color, you can compare the effects of market volatilities on ShuYu Civilian and Jiangsu Shuangxing 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 ShuYu Civilian with a short position of Jiangsu Shuangxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of ShuYu Civilian and Jiangsu Shuangxing.
Diversification Opportunities for ShuYu Civilian and Jiangsu Shuangxing
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ShuYu and Jiangsu is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding ShuYu Civilian Pharmacy and Jiangsu Shuangxing Color in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Shuangxing Color and ShuYu Civilian 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 ShuYu Civilian Pharmacy are associated (or correlated) with Jiangsu Shuangxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Shuangxing Color has no effect on the direction of ShuYu Civilian i.e., ShuYu Civilian and Jiangsu Shuangxing go up and down completely randomly.
Pair Corralation between ShuYu Civilian and Jiangsu Shuangxing
Assuming the 90 days trading horizon ShuYu Civilian Pharmacy is expected to generate 1.63 times more return on investment than Jiangsu Shuangxing. However, ShuYu Civilian is 1.63 times more volatile than Jiangsu Shuangxing Color. It trades about -0.04 of its potential returns per unit of risk. Jiangsu Shuangxing Color is currently generating about -0.09 per unit of risk. If you would invest 1,356 in ShuYu Civilian Pharmacy on October 8, 2024 and sell it today you would lose (237.00) from holding ShuYu Civilian Pharmacy or give up 17.48% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
ShuYu Civilian Pharmacy vs. Jiangsu Shuangxing Color
Performance |
Timeline |
ShuYu Civilian Pharmacy |
Jiangsu Shuangxing Color |
ShuYu Civilian and Jiangsu Shuangxing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ShuYu Civilian and Jiangsu Shuangxing
The main advantage of trading using opposite ShuYu Civilian and Jiangsu Shuangxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ShuYu Civilian position performs unexpectedly, Jiangsu Shuangxing 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 Shuangxing will offset losses from the drop in Jiangsu Shuangxing's long position.ShuYu Civilian vs. China Minmetals Rare | ShuYu Civilian vs. Hainan Mining Co | ShuYu Civilian vs. Ningbo Jintian Copper | ShuYu Civilian vs. Gem Year Industrial Co |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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