Correlation Between Hunan Investment and Jiangyin Jianghua
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By analyzing existing cross correlation between Hunan Investment Group and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Hunan Investment and Jiangyin Jianghua 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 Hunan Investment with a short position of Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Jiangyin Jianghua.
Diversification Opportunities for Hunan Investment and Jiangyin Jianghua
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hunan and Jiangyin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of Hunan Investment i.e., Hunan Investment and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Hunan Investment and Jiangyin Jianghua
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 0.73 times more return on investment than Jiangyin Jianghua. However, Hunan Investment Group is 1.37 times less risky than Jiangyin Jianghua. It trades about 0.2 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about 0.12 per unit of risk. If you would invest 524.00 in Hunan Investment Group on September 13, 2024 and sell it today you would earn a total of 81.00 from holding Hunan Investment Group or generate 15.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Hunan Investment |
| Jiangyin Jianghua |
Hunan Investment and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Jiangyin Jianghua
The main advantage of trading using opposite Hunan Investment and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua's long position.| Hunan Investment vs. Kweichow Moutai Co | Hunan Investment vs. Jiangsu Pacific Quartz | Hunan Investment vs. Shenzhen Transsion Holdings | Hunan Investment vs. Beijing Roborock Technology |
| Jiangyin Jianghua vs. Nanjing Putian Telecommunications | Jiangyin Jianghua vs. Tianjin Realty Development | Jiangyin Jianghua vs. Kangyue Technology Co | Jiangyin Jianghua vs. Shenzhen Hifuture Electric |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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