Correlation Between Jiangxi Selon and Shanghai Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangxi Selon Industrial and Shanghai Construction Group, you can compare the effects of market volatilities on Jiangxi Selon and Shanghai Construction 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 Jiangxi Selon with a short position of Shanghai Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Selon and Shanghai Construction.
Diversification Opportunities for Jiangxi Selon and Shanghai Construction
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Shanghai is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Selon Industrial and Shanghai Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Construction and Jiangxi Selon 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 Jiangxi Selon Industrial are associated (or correlated) with Shanghai Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Construction has no effect on the direction of Jiangxi Selon i.e., Jiangxi Selon and Shanghai Construction go up and down completely randomly.
Pair Corralation between Jiangxi Selon and Shanghai Construction
Assuming the 90 days trading horizon Jiangxi Selon Industrial is expected to generate 0.7 times more return on investment than Shanghai Construction. However, Jiangxi Selon Industrial is 1.42 times less risky than Shanghai Construction. It trades about 0.26 of its potential returns per unit of risk. Shanghai Construction Group is currently generating about 0.1 per unit of risk. If you would invest 685.00 in Jiangxi Selon Industrial on September 15, 2024 and sell it today you would earn a total of 92.00 from holding Jiangxi Selon Industrial or generate 13.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangxi Selon Industrial vs. Shanghai Construction Group
Performance |
Timeline |
Jiangxi Selon Industrial |
Shanghai Construction |
Jiangxi Selon and Shanghai Construction Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangxi Selon and Shanghai Construction
The main advantage of trading using opposite Jiangxi Selon and Shanghai Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Selon position performs unexpectedly, Shanghai Construction 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 Shanghai Construction will offset losses from the drop in Shanghai Construction's long position.Jiangxi Selon vs. Zijin Mining Group | Jiangxi Selon vs. Wanhua Chemical Group | Jiangxi Selon vs. Baoshan Iron Steel | Jiangxi Selon vs. Shandong Gold Mining |
Shanghai Construction vs. Anhui Deli Household | Shanghai Construction vs. Yindu Kitchen Equipment | Shanghai Construction vs. Inspur Software Co | Shanghai Construction vs. Heilongjiang Publishing Media |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |