Correlation Between Blue Sail and Changsha Jingjia
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By analyzing existing cross correlation between Blue Sail Medical and Changsha Jingjia Microelectronics, you can compare the effects of market volatilities on Blue Sail and Changsha Jingjia 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 Blue Sail with a short position of Changsha Jingjia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Sail and Changsha Jingjia.
Diversification Opportunities for Blue Sail and Changsha Jingjia
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blue and Changsha is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Blue Sail Medical and Changsha Jingjia Microelectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changsha Jingjia Mic and Blue Sail 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 Blue Sail Medical are associated (or correlated) with Changsha Jingjia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changsha Jingjia Mic has no effect on the direction of Blue Sail i.e., Blue Sail and Changsha Jingjia go up and down completely randomly.
Pair Corralation between Blue Sail and Changsha Jingjia
Assuming the 90 days trading horizon Blue Sail Medical is expected to under-perform the Changsha Jingjia. But the stock apears to be less risky and, when comparing its historical volatility, Blue Sail Medical is 2.62 times less risky than Changsha Jingjia. The stock trades about -0.11 of its potential returns per unit of risk. The Changsha Jingjia Microelectronics is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 8,122 in Changsha Jingjia Microelectronics on September 27, 2024 and sell it today you would earn a total of 2,278 from holding Changsha Jingjia Microelectronics or generate 28.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Blue Sail Medical vs. Changsha Jingjia Microelectron
Performance |
| Timeline |
| Blue Sail Medical |
| Changsha Jingjia Mic |
Blue Sail and Changsha Jingjia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Sail and Changsha Jingjia
The main advantage of trading using opposite Blue Sail and Changsha Jingjia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Sail position performs unexpectedly, Changsha Jingjia 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 Changsha Jingjia will offset losses from the drop in Changsha Jingjia's long position.The idea behind Blue Sail Medical and Changsha Jingjia Microelectronics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Changsha Jingjia vs. Ming Yang Smart | Changsha Jingjia vs. 159681 | Changsha Jingjia vs. 159005 | Changsha Jingjia vs. Loctek Ergonomic Technology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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