Correlation Between Jiangsu Pacific and Zoomlion Heavy
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By analyzing existing cross correlation between Jiangsu Pacific Quartz and Zoomlion Heavy Industry, you can compare the effects of market volatilities on Jiangsu Pacific and Zoomlion Heavy 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 Pacific with a short position of Zoomlion Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Pacific and Zoomlion Heavy.
Diversification Opportunities for Jiangsu Pacific and Zoomlion Heavy
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Zoomlion is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Pacific Quartz and Zoomlion Heavy Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoomlion Heavy Industry and Jiangsu Pacific 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 Pacific Quartz are associated (or correlated) with Zoomlion Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoomlion Heavy Industry has no effect on the direction of Jiangsu Pacific i.e., Jiangsu Pacific and Zoomlion Heavy go up and down completely randomly.
Pair Corralation between Jiangsu Pacific and Zoomlion Heavy
Assuming the 90 days trading horizon Jiangsu Pacific Quartz is expected to generate 1.2 times more return on investment than Zoomlion Heavy. However, Jiangsu Pacific is 1.2 times more volatile than Zoomlion Heavy Industry. It trades about 0.06 of its potential returns per unit of risk. Zoomlion Heavy Industry is currently generating about -0.02 per unit of risk. If you would invest 2,917 in Jiangsu Pacific Quartz on September 24, 2024 and sell it today you would earn a total of 49.00 from holding Jiangsu Pacific Quartz or generate 1.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Pacific Quartz vs. Zoomlion Heavy Industry
Performance |
Timeline |
Jiangsu Pacific Quartz |
Zoomlion Heavy Industry |
Jiangsu Pacific and Zoomlion Heavy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Pacific and Zoomlion Heavy
The main advantage of trading using opposite Jiangsu Pacific and Zoomlion Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Pacific position performs unexpectedly, Zoomlion Heavy 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 Zoomlion Heavy will offset losses from the drop in Zoomlion Heavy's long position.Jiangsu Pacific vs. Ming Yang Smart | Jiangsu Pacific vs. 159681 | Jiangsu Pacific vs. 159005 | Jiangsu Pacific vs. Loctek Ergonomic Technology |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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