Correlation Between Shenzhen Noposion and Jiangsu Jiejie
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Jiangsu Jiejie Microelectronics, you can compare the effects of market volatilities on Shenzhen Noposion and Jiangsu Jiejie 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 Noposion with a short position of Jiangsu Jiejie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Jiangsu Jiejie.
Diversification Opportunities for Shenzhen Noposion and Jiangsu Jiejie
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Jiangsu is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Jiangsu Jiejie Microelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jiejie Micro and Shenzhen Noposion 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 Noposion Agrochemicals are associated (or correlated) with Jiangsu Jiejie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jiejie Micro has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Jiangsu Jiejie go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Jiangsu Jiejie
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to under-perform the Jiangsu Jiejie. In addition to that, Shenzhen Noposion is 1.45 times more volatile than Jiangsu Jiejie Microelectronics. It trades about -0.15 of its total potential returns per unit of risk. Jiangsu Jiejie Microelectronics is currently generating about 0.09 per unit of volatility. If you would invest 3,208 in Jiangsu Jiejie Microelectronics on November 3, 2024 and sell it today you would earn a total of 111.00 from holding Jiangsu Jiejie Microelectronics or generate 3.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Jiangsu Jiejie Microelectronic
Performance |
| Timeline |
| Shenzhen Noposion |
| Jiangsu Jiejie Micro |
Shenzhen Noposion and Jiangsu Jiejie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Jiangsu Jiejie
The main advantage of trading using opposite Shenzhen Noposion and Jiangsu Jiejie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Jiangsu Jiejie 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 Jiangsu Jiejie will offset losses from the drop in Jiangsu Jiejie's long position.| Shenzhen Noposion vs. Jinxiandai Information Industry | Shenzhen Noposion vs. Xinjiang Baodi Mining | Shenzhen Noposion vs. Hangzhou Gisway Information | Shenzhen Noposion vs. Zhejiang Yongjin Metal |
| Jiangsu Jiejie vs. Shengda Mining Co | Jiangsu Jiejie vs. Senci Electric Machinery | Jiangsu Jiejie vs. Ningbo Construction Co | Jiangsu Jiejie vs. Gifore Agricultural Machinery |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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