Correlation Between Shenzhen Hifuture and Jiangyin Jianghua
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Shenzhen Hifuture and Jiangyin Jianghua 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 Shenzhen Hifuture with a short position of Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Jiangyin Jianghua.
Diversification Opportunities for Shenzhen Hifuture and Jiangyin Jianghua
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Jiangyin is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua and Shenzhen Hifuture 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 Shenzhen Hifuture Electric are associated (or correlated) with Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Jiangyin Jianghua
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Jiangyin Jianghua. In addition to that, Shenzhen Hifuture is 1.34 times more volatile than Jiangyin Jianghua Microelectronics. It trades about -0.26 of its total potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about -0.16 per unit of volatility. If you would invest 1,762 in Jiangyin Jianghua Microelectronics on October 29, 2024 and sell it today you would lose (125.00) from holding Jiangyin Jianghua Microelectronics or give up 7.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Hifuture Electric vs. Jiangyin Jianghua Microelectro
Performance |
Timeline |
Shenzhen Hifuture |
Jiangyin Jianghua |
Shenzhen Hifuture and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Hifuture and Jiangyin Jianghua
The main advantage of trading using opposite Shenzhen Hifuture and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua's long position.Shenzhen Hifuture vs. Gifore Agricultural Machinery | Shenzhen Hifuture vs. Unisplendour Corp | Shenzhen Hifuture vs. Chongqing Brewery Co | Shenzhen Hifuture vs. Huasi Agricultural Development |
Jiangyin Jianghua vs. Jiangsu Yanghe Brewery | Jiangyin Jianghua vs. Heilongjiang Publishing Media | Jiangyin Jianghua vs. Beijing Yanjing Brewery | Jiangyin Jianghua vs. Linewell Software Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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