Correlation Between Jiangsu Broadcasting and Dazhong Transportation
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Broadcasting Cable and Dazhong Transportation Group, you can compare the effects of market volatilities on Jiangsu Broadcasting and Dazhong Transportation 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 Jiangsu Broadcasting with a short position of Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and Dazhong Transportation.
Diversification Opportunities for Jiangsu Broadcasting and Dazhong Transportation
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Dazhong is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation and Jiangsu Broadcasting 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 Jiangsu Broadcasting Cable are associated (or correlated) with Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Jiangsu Broadcasting i.e., Jiangsu Broadcasting and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and Dazhong Transportation
Assuming the 90 days trading horizon Jiangsu Broadcasting is expected to generate 1.9 times less return on investment than Dazhong Transportation. But when comparing it to its historical volatility, Jiangsu Broadcasting Cable is 1.58 times less risky than Dazhong Transportation. It trades about 0.03 of its potential returns per unit of risk. Dazhong Transportation Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Dazhong Transportation Group on September 26, 2024 and sell it today you would earn a total of 4.00 from holding Dazhong Transportation Group or generate 21.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Broadcasting Cable vs. Dazhong Transportation Group
Performance |
Timeline |
Jiangsu Broadcasting |
Dazhong Transportation |
Jiangsu Broadcasting and Dazhong Transportation Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Broadcasting and Dazhong Transportation
The main advantage of trading using opposite Jiangsu Broadcasting and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.Jiangsu Broadcasting vs. Agricultural Bank of | Jiangsu Broadcasting vs. Industrial and Commercial | Jiangsu Broadcasting vs. Bank of China | Jiangsu Broadcasting vs. China Construction Bank |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Transaction History View history of all your transactions and understand their impact on performance | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |