Correlation Between Jiujiang Shanshui and Guangzhou Zhujiang
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Guangzhou Zhujiang Brewery, you can compare the effects of market volatilities on Jiujiang Shanshui and Guangzhou Zhujiang 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 Jiujiang Shanshui with a short position of Guangzhou Zhujiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Guangzhou Zhujiang.
Diversification Opportunities for Jiujiang Shanshui and Guangzhou Zhujiang
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiujiang and Guangzhou is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Guangzhou Zhujiang Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Zhujiang and Jiujiang Shanshui 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 Jiujiang Shanshui Technology are associated (or correlated) with Guangzhou Zhujiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Zhujiang has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Guangzhou Zhujiang go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Guangzhou Zhujiang
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to generate 1.31 times more return on investment than Guangzhou Zhujiang. However, Jiujiang Shanshui is 1.31 times more volatile than Guangzhou Zhujiang Brewery. It trades about 0.18 of its potential returns per unit of risk. Guangzhou Zhujiang Brewery is currently generating about 0.14 per unit of risk. If you would invest 1,221 in Jiujiang Shanshui Technology on September 15, 2024 and sell it today you would earn a total of 431.00 from holding Jiujiang Shanshui Technology or generate 35.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiujiang Shanshui Technology vs. Guangzhou Zhujiang Brewery
Performance |
Timeline |
Jiujiang Shanshui |
Guangzhou Zhujiang |
Jiujiang Shanshui and Guangzhou Zhujiang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiujiang Shanshui and Guangzhou Zhujiang
The main advantage of trading using opposite Jiujiang Shanshui and Guangzhou Zhujiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Guangzhou Zhujiang 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 Guangzhou Zhujiang will offset losses from the drop in Guangzhou Zhujiang's long position.Jiujiang Shanshui vs. Guangzhou Dongfang Hotel | Jiujiang Shanshui vs. Cultural Investment Holdings | Jiujiang Shanshui vs. Zhongrun Resources Investment | Jiujiang Shanshui vs. Zoje Resources Investment |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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