Correlation Between China Merchants and Jonjee Hi
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By analyzing existing cross correlation between China Merchants Shekou and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on China Merchants 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 China Merchants with a short position of Jonjee Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Jonjee Hi.
Diversification Opportunities for China Merchants and Jonjee Hi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Jonjee is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Shekou 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 China Merchants 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 China Merchants Shekou 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 China Merchants i.e., China Merchants and Jonjee Hi go up and down completely randomly.
Pair Corralation between China Merchants and Jonjee Hi
Assuming the 90 days trading horizon China Merchants Shekou is expected to under-perform the Jonjee Hi. But the stock apears to be less risky and, when comparing its historical volatility, China Merchants Shekou is 1.14 times less risky than Jonjee Hi. The stock trades about -0.09 of its potential returns per unit of risk. The Jonjee Hi tech Industrial is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,400 in Jonjee Hi tech Industrial on September 12, 2024 and sell it today you would earn a total of 13.00 from holding Jonjee Hi tech Industrial or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Shekou vs. Jonjee Hi tech Industrial
Performance |
| Timeline |
| China Merchants Shekou |
| Jonjee Hi tech |
China Merchants and Jonjee Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Jonjee Hi
The main advantage of trading using opposite China Merchants and Jonjee Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants 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.| China Merchants vs. Chongqing Brewery Co | China Merchants vs. Duzhe Publishing Media | China Merchants vs. Chinese Universe Publishing | China Merchants vs. Zhejiang Publishing Media |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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