Correlation Between Maoming Petro and Jiangsu Jiejie
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Jiangsu Jiejie Microelectronics, you can compare the effects of market volatilities on Maoming Petro 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 Maoming Petro with a short position of Jiangsu Jiejie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Jiangsu Jiejie.
Diversification Opportunities for Maoming Petro and Jiangsu Jiejie
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Maoming and Jiangsu is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua 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 Maoming Petro 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 Maoming Petro Chemical Shihua 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 Maoming Petro i.e., Maoming Petro and Jiangsu Jiejie go up and down completely randomly.
Pair Corralation between Maoming Petro and Jiangsu Jiejie
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to under-perform the Jiangsu Jiejie. But the stock apears to be less risky and, when comparing its historical volatility, Maoming Petro Chemical Shihua is 1.43 times less risky than Jiangsu Jiejie. The stock trades about -0.04 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Jiangsu Jiejie Microelectronic
Performance |
| Timeline |
| Maoming Petro Chemical |
| Jiangsu Jiejie Micro |
Maoming Petro and Jiangsu Jiejie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Jiangsu Jiejie
The main advantage of trading using opposite Maoming Petro and Jiangsu Jiejie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro 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.| Maoming Petro vs. Runjian Communication Co | Maoming Petro vs. Shenzhen Zqgame | Maoming Petro vs. Dongfeng Automobile Co | Maoming Petro vs. Beijing Mainstreets Investment |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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