Correlation Between Jiangsu Zhongtian and Xiamen ITG
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By analyzing existing cross correlation between Jiangsu Zhongtian Technology and Xiamen ITG Group, you can compare the effects of market volatilities on Jiangsu Zhongtian and Xiamen ITG 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 Zhongtian with a short position of Xiamen ITG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Zhongtian and Xiamen ITG.
Diversification Opportunities for Jiangsu Zhongtian and Xiamen ITG
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Xiamen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Zhongtian Technology and Xiamen ITG Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen ITG Group and Jiangsu Zhongtian 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 Zhongtian Technology are associated (or correlated) with Xiamen ITG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen ITG Group has no effect on the direction of Jiangsu Zhongtian i.e., Jiangsu Zhongtian and Xiamen ITG go up and down completely randomly.
Pair Corralation between Jiangsu Zhongtian and Xiamen ITG
Assuming the 90 days trading horizon Jiangsu Zhongtian Technology is expected to under-perform the Xiamen ITG. In addition to that, Jiangsu Zhongtian is 1.34 times more volatile than Xiamen ITG Group. It trades about -0.03 of its total potential returns per unit of risk. Xiamen ITG Group is currently generating about 0.02 per unit of volatility. If you would invest 661.00 in Xiamen ITG Group on September 23, 2024 and sell it today you would earn a total of 2.00 from holding Xiamen ITG Group or generate 0.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Zhongtian Technology vs. Xiamen ITG Group
Performance |
Timeline |
Jiangsu Zhongtian |
Xiamen ITG Group |
Jiangsu Zhongtian and Xiamen ITG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Zhongtian and Xiamen ITG
The main advantage of trading using opposite Jiangsu Zhongtian and Xiamen ITG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Zhongtian position performs unexpectedly, Xiamen ITG 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 Xiamen ITG will offset losses from the drop in Xiamen ITG's long position.Jiangsu Zhongtian vs. Kweichow Moutai Co | Jiangsu Zhongtian vs. Contemporary Amperex Technology | Jiangsu Zhongtian vs. G bits Network Technology | Jiangsu Zhongtian vs. BYD Co Ltd |
Xiamen ITG vs. BeiGene | Xiamen ITG vs. Kweichow Moutai Co | Xiamen ITG vs. Beijing Roborock Technology | Xiamen ITG vs. G bits Network Technology |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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