Correlation Between ChengDu Hi and Jonjee Hi
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By analyzing existing cross correlation between ChengDu Hi Tech Development and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on ChengDu Hi 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 ChengDu Hi with a short position of Jonjee Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChengDu Hi and Jonjee Hi.
Diversification Opportunities for ChengDu Hi and Jonjee Hi
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ChengDu and Jonjee is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding ChengDu Hi Tech Development 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 ChengDu Hi 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 ChengDu Hi Tech Development 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 ChengDu Hi i.e., ChengDu Hi and Jonjee Hi go up and down completely randomly.
Pair Corralation between ChengDu Hi and Jonjee Hi
Assuming the 90 days trading horizon ChengDu Hi Tech Development is expected to generate 1.87 times more return on investment than Jonjee Hi. However, ChengDu Hi is 1.87 times more volatile than Jonjee Hi tech Industrial. It trades about 0.1 of its potential returns per unit of risk. Jonjee Hi tech Industrial is currently generating about -0.05 per unit of risk. If you would invest 1,276 in ChengDu Hi Tech Development on August 26, 2024 and sell it today you would earn a total of 4,566 from holding ChengDu Hi Tech Development or generate 357.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ChengDu Hi Tech Development vs. Jonjee Hi tech Industrial
Performance |
| Timeline |
| ChengDu Hi Tech |
| Jonjee Hi tech |
ChengDu Hi and Jonjee Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChengDu Hi and Jonjee Hi
The main advantage of trading using opposite ChengDu Hi and Jonjee Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChengDu Hi 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.| ChengDu Hi vs. Industrial and Commercial | ChengDu Hi vs. China Construction Bank | ChengDu Hi vs. Bank of China | ChengDu Hi vs. Agricultural Bank of |
| Jonjee Hi vs. China Petroleum Chemical | Jonjee Hi vs. PetroChina Co Ltd | Jonjee Hi vs. China State Construction | Jonjee Hi vs. China Railway Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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