Correlation Between Jiujiang Shanshui and Huasi Agricultural
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Huasi Agricultural Development, you can compare the effects of market volatilities on Jiujiang Shanshui and Huasi Agricultural 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 Huasi Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Huasi Agricultural.
Diversification Opportunities for Jiujiang Shanshui and Huasi Agricultural
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiujiang and Huasi is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Huasi Agricultural Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huasi Agricultural 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 Huasi Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huasi Agricultural has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Huasi Agricultural go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Huasi Agricultural
Assuming the 90 days trading horizon Jiujiang Shanshui is expected to generate 4.68 times less return on investment than Huasi Agricultural. But when comparing it to its historical volatility, Jiujiang Shanshui Technology is 1.85 times less risky than Huasi Agricultural. It trades about 0.03 of its potential returns per unit of risk. Huasi Agricultural Development is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 382.00 in Huasi Agricultural Development on September 25, 2024 and sell it today you would earn a total of 41.00 from holding Huasi Agricultural Development or generate 10.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiujiang Shanshui Technology vs. Huasi Agricultural Development
Performance |
Timeline |
Jiujiang Shanshui |
Huasi Agricultural |
Jiujiang Shanshui and Huasi Agricultural Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiujiang Shanshui and Huasi Agricultural
The main advantage of trading using opposite Jiujiang Shanshui and Huasi Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Huasi Agricultural 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 Huasi Agricultural will offset losses from the drop in Huasi Agricultural's long position.Jiujiang Shanshui vs. Hunan Mendale Hometextile | Jiujiang Shanshui vs. Nanjing OLO Home | Jiujiang Shanshui vs. Sichuan Hebang Biotechnology | Jiujiang Shanshui vs. Qumei Furniture Group |
Huasi Agricultural vs. KSEC Intelligent Technology | Huasi Agricultural vs. Tianshui Huatian Technology | Huasi Agricultural vs. Jiujiang Shanshui Technology | Huasi Agricultural vs. HanS Laser Tech |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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