Correlation Between Jiujiang Shanshui and Tongxing Environmental
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Tongxing Environmental Protection, you can compare the effects of market volatilities on Jiujiang Shanshui and Tongxing Environmental 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 Tongxing Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Tongxing Environmental.
Diversification Opportunities for Jiujiang Shanshui and Tongxing Environmental
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiujiang and Tongxing is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Tongxing Environmental Protect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongxing Environmental 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 Tongxing Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongxing Environmental has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Tongxing Environmental go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Tongxing Environmental
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to generate 0.71 times more return on investment than Tongxing Environmental. However, Jiujiang Shanshui Technology is 1.4 times less risky than Tongxing Environmental. It trades about 0.0 of its potential returns per unit of risk. Tongxing Environmental Protection is currently generating about -0.01 per unit of risk. If you would invest 1,764 in Jiujiang Shanshui Technology on September 20, 2024 and sell it today you would lose (154.00) from holding Jiujiang Shanshui Technology or give up 8.73% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiujiang Shanshui Technology vs. Tongxing Environmental Protect
Performance |
Timeline |
Jiujiang Shanshui |
Tongxing Environmental |
Jiujiang Shanshui and Tongxing Environmental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiujiang Shanshui and Tongxing Environmental
The main advantage of trading using opposite Jiujiang Shanshui and Tongxing Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Tongxing Environmental 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 Tongxing Environmental will offset losses from the drop in Tongxing Environmental's long position.Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Wanhua Chemical Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Shandong Gold Mining |
Tongxing Environmental vs. Lutian Machinery Co | Tongxing Environmental vs. China Longyuan Power | Tongxing Environmental vs. PetroChina Co Ltd | Tongxing Environmental vs. Bank of China |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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