Correlation Between Armada Hflr and Jiangsu Zhongtian
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By analyzing existing cross correlation between Armada Hflr Pr and Jiangsu Zhongtian Technology, you can compare the effects of market volatilities on Armada Hflr and Jiangsu Zhongtian 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 Armada Hflr with a short position of Jiangsu Zhongtian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Jiangsu Zhongtian.
Diversification Opportunities for Armada Hflr and Jiangsu Zhongtian
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Armada and Jiangsu is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Jiangsu Zhongtian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Zhongtian and Armada Hflr 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 Armada Hflr Pr are associated (or correlated) with Jiangsu Zhongtian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Zhongtian has no effect on the direction of Armada Hflr i.e., Armada Hflr and Jiangsu Zhongtian go up and down completely randomly.
Pair Corralation between Armada Hflr and Jiangsu Zhongtian
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Jiangsu Zhongtian. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.53 times less risky than Jiangsu Zhongtian. The stock trades about -0.01 of its potential returns per unit of risk. The Jiangsu Zhongtian Technology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,568 in Jiangsu Zhongtian Technology on December 4, 2024 and sell it today you would lose (163.00) from holding Jiangsu Zhongtian Technology or give up 10.4% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 96.36% |
Values | Daily Returns |
Armada Hflr Pr vs. Jiangsu Zhongtian Technology
Performance |
Timeline |
Armada Hflr Pr |
Jiangsu Zhongtian |
Armada Hflr and Jiangsu Zhongtian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and Jiangsu Zhongtian
The main advantage of trading using opposite Armada Hflr and Jiangsu Zhongtian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Jiangsu Zhongtian 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 Jiangsu Zhongtian will offset losses from the drop in Jiangsu Zhongtian's long position.Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
Jiangsu Zhongtian vs. Kweichow Moutai Co | Jiangsu Zhongtian vs. NAURA Technology Group | Jiangsu Zhongtian vs. BYD Co Ltd | Jiangsu Zhongtian vs. Zhejiang Orient Gene |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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