Correlation Between Jiujiang Shanshui and ACM Research
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and ACM Research Shanghai, you can compare the effects of market volatilities on Jiujiang Shanshui and ACM Research 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 ACM Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and ACM Research.
Diversification Opportunities for Jiujiang Shanshui and ACM Research
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiujiang and ACM is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and ACM Research Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACM Research Shanghai 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 ACM Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACM Research Shanghai has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and ACM Research go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and ACM Research
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to generate 0.74 times more return on investment than ACM Research. However, Jiujiang Shanshui Technology is 1.36 times less risky than ACM Research. It trades about -0.07 of its potential returns per unit of risk. ACM Research Shanghai is currently generating about -0.17 per unit of risk. If you would invest 1,615 in Jiujiang Shanshui Technology on September 25, 2024 and sell it today you would lose (37.00) from holding Jiujiang Shanshui Technology or give up 2.29% 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. ACM Research Shanghai
Performance |
Timeline |
Jiujiang Shanshui |
ACM Research Shanghai |
Jiujiang Shanshui and ACM Research Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiujiang Shanshui and ACM Research
The main advantage of trading using opposite Jiujiang Shanshui and ACM Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, ACM Research 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 ACM Research will offset losses from the drop in ACM Research'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 |
ACM Research vs. Ming Yang Smart | ACM Research vs. 159681 | ACM Research vs. 159005 | ACM Research vs. Loctek Ergonomic Technology |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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