Correlation Between Beijing Shunxin and Jiangxi Selon
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By analyzing existing cross correlation between Beijing Shunxin Agriculture and Jiangxi Selon Industrial, you can compare the effects of market volatilities on Beijing Shunxin and Jiangxi Selon 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 Beijing Shunxin with a short position of Jiangxi Selon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Shunxin and Jiangxi Selon.
Diversification Opportunities for Beijing Shunxin and Jiangxi Selon
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Jiangxi is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Shunxin Agriculture and Jiangxi Selon Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Selon Industrial and Beijing Shunxin 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 Beijing Shunxin Agriculture are associated (or correlated) with Jiangxi Selon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Selon Industrial has no effect on the direction of Beijing Shunxin i.e., Beijing Shunxin and Jiangxi Selon go up and down completely randomly.
Pair Corralation between Beijing Shunxin and Jiangxi Selon
Assuming the 90 days trading horizon Beijing Shunxin Agriculture is expected to generate 1.59 times more return on investment than Jiangxi Selon. However, Beijing Shunxin is 1.59 times more volatile than Jiangxi Selon Industrial. It trades about 0.19 of its potential returns per unit of risk. Jiangxi Selon Industrial is currently generating about 0.27 per unit of risk. If you would invest 1,412 in Beijing Shunxin Agriculture on September 15, 2024 and sell it today you would earn a total of 621.00 from holding Beijing Shunxin Agriculture or generate 43.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing Shunxin Agriculture vs. Jiangxi Selon Industrial
Performance |
Timeline |
Beijing Shunxin Agri |
Jiangxi Selon Industrial |
Beijing Shunxin and Jiangxi Selon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Shunxin and Jiangxi Selon
The main advantage of trading using opposite Beijing Shunxin and Jiangxi Selon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Shunxin position performs unexpectedly, Jiangxi Selon 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 Jiangxi Selon will offset losses from the drop in Jiangxi Selon's long position.Beijing Shunxin vs. China Life Insurance | Beijing Shunxin vs. Cinda Securities Co | Beijing Shunxin vs. Piotech Inc A | Beijing Shunxin vs. Dongxing Sec Co |
Jiangxi Selon vs. Zijin Mining Group | Jiangxi Selon vs. Wanhua Chemical Group | Jiangxi Selon vs. Baoshan Iron Steel | Jiangxi Selon vs. Shandong Gold Mining |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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