Correlation Between Jiangsu Jinling and Beijing Sanyuan
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Jiangsu Jinling and Beijing Sanyuan 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 Jinling with a short position of Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Beijing Sanyuan.
Diversification Opportunities for Jiangsu Jinling and Beijing Sanyuan
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Beijing is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods and Jiangsu Jinling 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 Jinling Sports are associated (or correlated) with Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Beijing Sanyuan
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 1.57 times more return on investment than Beijing Sanyuan. However, Jiangsu Jinling is 1.57 times more volatile than Beijing Sanyuan Foods. It trades about 0.16 of its potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about 0.22 per unit of risk. If you would invest 1,096 in Jiangsu Jinling Sports on September 12, 2024 and sell it today you would earn a total of 359.00 from holding Jiangsu Jinling Sports or generate 32.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Jinling Sports vs. Beijing Sanyuan Foods
Performance |
Timeline |
Jiangsu Jinling Sports |
Beijing Sanyuan Foods |
Jiangsu Jinling and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Jinling and Beijing Sanyuan
The main advantage of trading using opposite Jiangsu Jinling and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Beijing Sanyuan 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 Beijing Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.Jiangsu Jinling vs. Lutian Machinery Co | Jiangsu Jinling vs. PetroChina Co Ltd | Jiangsu Jinling vs. Bank of China | Jiangsu Jinling vs. Gansu Jiu Steel |
Beijing Sanyuan vs. China Petroleum Chemical | Beijing Sanyuan vs. PetroChina Co Ltd | Beijing Sanyuan vs. China State Construction | Beijing Sanyuan vs. China Railway Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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