Correlation Between Xiandai Investment and Jinsanjiang Silicon
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By analyzing existing cross correlation between Xiandai Investment Co and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Xiandai Investment and Jinsanjiang Silicon 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 Xiandai Investment with a short position of Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Jinsanjiang Silicon.
Diversification Opportunities for Xiandai Investment and Jinsanjiang Silicon
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiandai and Jinsanjiang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon and Xiandai 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 Xiandai Investment Co are associated (or correlated) with Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Xiandai Investment and Jinsanjiang Silicon
Assuming the 90 days trading horizon Xiandai Investment Co is expected to generate 0.97 times more return on investment than Jinsanjiang Silicon. However, Xiandai Investment Co is 1.03 times less risky than Jinsanjiang Silicon. It trades about 0.2 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about 0.06 per unit of risk. If you would invest 414.00 in Xiandai Investment Co on September 4, 2024 and sell it today you would earn a total of 49.00 from holding Xiandai Investment Co or generate 11.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Xiandai Investment |
| Jinsanjiang Silicon |
Xiandai Investment and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Jinsanjiang Silicon
The main advantage of trading using opposite Xiandai Investment and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.| Xiandai Investment vs. Jinsanjiang Silicon Material | Xiandai Investment vs. Shandong Hongchuang Aluminum | Xiandai Investment vs. Aluminum Corp of | Xiandai Investment vs. Cangzhou Mingzhu Plastic |
| Jinsanjiang Silicon vs. Dhc Software Co | Jinsanjiang Silicon vs. Niutech Environment Technology | Jinsanjiang Silicon vs. Gome Telecom Equipment | Jinsanjiang Silicon vs. Xinjiang Communications Construction |
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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