Correlation Between Western Metal and Jinsanjiang Silicon
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By analyzing existing cross correlation between Western Metal Materials and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Western Metal 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 Western Metal with a short position of Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Jinsanjiang Silicon.
Diversification Opportunities for Western Metal and Jinsanjiang Silicon
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Western and Jinsanjiang is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon and Western Metal 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 Western Metal Materials 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 Western Metal i.e., Western Metal and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Western Metal and Jinsanjiang Silicon
Assuming the 90 days trading horizon Western Metal is expected to generate 1.05 times less return on investment than Jinsanjiang Silicon. But when comparing it to its historical volatility, Western Metal Materials is 1.39 times less risky than Jinsanjiang Silicon. It trades about 0.09 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 850.00 in Jinsanjiang Silicon Material on November 3, 2024 and sell it today you would earn a total of 232.00 from holding Jinsanjiang Silicon Material or generate 27.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Western Metal Materials |
| Jinsanjiang Silicon |
Western Metal and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Jinsanjiang Silicon
The main advantage of trading using opposite Western Metal and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal 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.| Western Metal vs. Kingclean Electric Co | Western Metal vs. Hangzhou Zhongya Machinery | Western Metal vs. Guangzhou KDT Machinery | Western Metal vs. Masterwork Machinery |
| Jinsanjiang Silicon vs. Anhui Shiny Electronic | Jinsanjiang Silicon vs. Success Electronics | Jinsanjiang Silicon vs. Dawning Information Industry | Jinsanjiang Silicon vs. Zhongfu Information |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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