Correlation Between China Vanke and Jonjee Hi
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By analyzing existing cross correlation between China Vanke Co and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on China Vanke and Jonjee Hi 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 China Vanke with a short position of Jonjee Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Jonjee Hi.
Diversification Opportunities for China Vanke and Jonjee Hi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Jonjee is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Jonjee Hi tech Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jonjee Hi tech and China Vanke 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 China Vanke Co are associated (or correlated) with Jonjee Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jonjee Hi tech has no effect on the direction of China Vanke i.e., China Vanke and Jonjee Hi go up and down completely randomly.
Pair Corralation between China Vanke and Jonjee Hi
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Jonjee Hi. But the stock apears to be less risky and, when comparing its historical volatility, China Vanke Co is 1.45 times less risky than Jonjee Hi. The stock trades about -0.08 of its potential returns per unit of risk. The Jonjee Hi tech Industrial is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,306 in Jonjee Hi tech Industrial on September 4, 2024 and sell it today you would earn a total of 57.00 from holding Jonjee Hi tech Industrial or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. Jonjee Hi tech Industrial
Performance |
| Timeline |
| China Vanke |
| Jonjee Hi tech |
China Vanke and Jonjee Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Jonjee Hi
The main advantage of trading using opposite China Vanke and Jonjee Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Jonjee Hi 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 Jonjee Hi will offset losses from the drop in Jonjee Hi's long position.| China Vanke vs. Jiajia Food Group | China Vanke vs. Ligao Foods CoLtd | China Vanke vs. Qijing Machinery | China Vanke vs. Anji Foodstuff Co |
| Jonjee Hi vs. Poly Real Estate | Jonjee Hi vs. China Vanke Co | Jonjee Hi vs. China Merchants Shekou | Jonjee Hi vs. Huafa Industrial 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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