Correlation Between Jiangsu Pacific and Flat Glass
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By analyzing existing cross correlation between Jiangsu Pacific Quartz and Flat Glass Group, you can compare the effects of market volatilities on Jiangsu Pacific and Flat Glass 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 Flat Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Pacific and Flat Glass.
Diversification Opportunities for Jiangsu Pacific and Flat Glass
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Flat is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Pacific Quartz and Flat Glass Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flat Glass Group 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 Flat Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flat Glass Group has no effect on the direction of Jiangsu Pacific i.e., Jiangsu Pacific and Flat Glass go up and down completely randomly.
Pair Corralation between Jiangsu Pacific and Flat Glass
Assuming the 90 days trading horizon Jiangsu Pacific Quartz is expected to generate 0.69 times more return on investment than Flat Glass. However, Jiangsu Pacific Quartz is 1.45 times less risky than Flat Glass. It trades about 0.06 of its potential returns per unit of risk. Flat Glass Group is currently generating about -0.33 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 | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Pacific Quartz vs. Flat Glass Group
Performance |
Timeline |
Jiangsu Pacific Quartz |
Flat Glass Group |
Jiangsu Pacific and Flat Glass Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Pacific and Flat Glass
The main advantage of trading using opposite Jiangsu Pacific and Flat Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Pacific position performs unexpectedly, Flat Glass 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 Flat Glass will offset losses from the drop in Flat Glass' 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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