Correlation Between Jiujiang Shanshui and INKON Life
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and INKON Life Technology, you can compare the effects of market volatilities on Jiujiang Shanshui and INKON Life 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 Jiujiang Shanshui with a short position of INKON Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and INKON Life.
Diversification Opportunities for Jiujiang Shanshui and INKON Life
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiujiang and INKON is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and INKON Life Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INKON Life Technology and Jiujiang Shanshui 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 Jiujiang Shanshui Technology are associated (or correlated) with INKON Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INKON Life Technology has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and INKON Life go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and INKON Life
Assuming the 90 days trading horizon Jiujiang Shanshui is expected to generate 1.05 times less return on investment than INKON Life. But when comparing it to its historical volatility, Jiujiang Shanshui Technology is 1.41 times less risky than INKON Life. It trades about 0.11 of its potential returns per unit of risk. INKON Life Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 794.00 in INKON Life Technology on September 26, 2024 and sell it today you would earn a total of 131.00 from holding INKON Life Technology or generate 16.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiujiang Shanshui Technology vs. INKON Life Technology
Performance |
Timeline |
Jiujiang Shanshui |
INKON Life Technology |
Jiujiang Shanshui and INKON Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiujiang Shanshui and INKON Life
The main advantage of trading using opposite Jiujiang Shanshui and INKON Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, INKON Life 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 INKON Life will offset losses from the drop in INKON Life's long position.Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Shandong Gold Mining | Jiujiang Shanshui vs. Rongsheng Petrochemical Co |
INKON Life vs. Cultural Investment Holdings | INKON Life vs. Gome Telecom Equipment | INKON Life vs. Bus Online Co | INKON Life vs. Holitech Technology Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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