Correlation Between Xiamen Insight and Jiangsu Jiejie
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By analyzing existing cross correlation between Xiamen Insight Investment and Jiangsu Jiejie Microelectronics, you can compare the effects of market volatilities on Xiamen Insight and Jiangsu Jiejie 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 Xiamen Insight with a short position of Jiangsu Jiejie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Insight and Jiangsu Jiejie.
Diversification Opportunities for Xiamen Insight and Jiangsu Jiejie
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Jiangsu is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Insight Investment and Jiangsu Jiejie Microelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jiejie Micro and Xiamen Insight 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 Xiamen Insight Investment are associated (or correlated) with Jiangsu Jiejie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jiejie Micro has no effect on the direction of Xiamen Insight i.e., Xiamen Insight and Jiangsu Jiejie go up and down completely randomly.
Pair Corralation between Xiamen Insight and Jiangsu Jiejie
Assuming the 90 days trading horizon Xiamen Insight Investment is expected to under-perform the Jiangsu Jiejie. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen Insight Investment is 1.22 times less risky than Jiangsu Jiejie. The stock trades about -0.08 of its potential returns per unit of risk. The Jiangsu Jiejie Microelectronics is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,208 in Jiangsu Jiejie Microelectronics on November 3, 2024 and sell it today you would earn a total of 111.00 from holding Jiangsu Jiejie Microelectronics or generate 3.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Insight Investment vs. Jiangsu Jiejie Microelectronic
Performance |
| Timeline |
| Xiamen Insight Investment |
| Jiangsu Jiejie Micro |
Xiamen Insight and Jiangsu Jiejie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Insight and Jiangsu Jiejie
The main advantage of trading using opposite Xiamen Insight and Jiangsu Jiejie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Insight position performs unexpectedly, Jiangsu Jiejie 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 Jiangsu Jiejie will offset losses from the drop in Jiangsu Jiejie's long position.| Xiamen Insight vs. Kuang Chi Technologies | Xiamen Insight vs. Jiangyin Jianghua Microelectronics | Xiamen Insight vs. XiaMen HongXin Electron tech | Xiamen Insight vs. Anhui Shiny Electronic |
| Jiangsu Jiejie vs. Shengda Mining Co | Jiangsu Jiejie vs. Senci Electric Machinery | Jiangsu Jiejie vs. Ningbo Construction Co | Jiangsu Jiejie vs. Gifore Agricultural Machinery |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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