Correlation Between Xiangtan Electrochemical and Jinsanjiang Silicon
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By analyzing existing cross correlation between Xiangtan Electrochemical Scientific and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Xiangtan Electrochemical 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 Xiangtan Electrochemical with a short position of Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangtan Electrochemical and Jinsanjiang Silicon.
Diversification Opportunities for Xiangtan Electrochemical and Jinsanjiang Silicon
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xiangtan and Jinsanjiang is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Xiangtan Electrochemical Scien and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon and Xiangtan Electrochemical 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 Xiangtan Electrochemical Scientific 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 Xiangtan Electrochemical i.e., Xiangtan Electrochemical and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Xiangtan Electrochemical and Jinsanjiang Silicon
Assuming the 90 days trading horizon Xiangtan Electrochemical Scientific is expected to under-perform the Jinsanjiang Silicon. But the stock apears to be less risky and, when comparing its historical volatility, Xiangtan Electrochemical Scientific is 3.03 times less risky than Jinsanjiang Silicon. The stock trades about -0.38 of its potential returns per unit of risk. The Jinsanjiang Silicon Material is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 1,139 in Jinsanjiang Silicon Material on October 14, 2024 and sell it today you would lose (158.00) from holding Jinsanjiang Silicon Material or give up 13.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangtan Electrochemical Scien vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Xiangtan Electrochemical |
| Jinsanjiang Silicon |
Xiangtan Electrochemical and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangtan Electrochemical and Jinsanjiang Silicon
The main advantage of trading using opposite Xiangtan Electrochemical and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangtan Electrochemical 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.| Xiangtan Electrochemical vs. Aluminum Corp of | Xiangtan Electrochemical vs. Rising Nonferrous Metals | Xiangtan Electrochemical vs. Success Electronics | Xiangtan Electrochemical vs. Jiaozuo Wanfang Aluminum |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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