Correlation Between Zhejiang Kingland and Jiangyin Jianghua
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Zhejiang Kingland 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 Zhejiang Kingland with a short position of Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Jiangyin Jianghua.
Diversification Opportunities for Zhejiang Kingland and Jiangyin Jianghua
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Jiangyin is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua and Zhejiang Kingland 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 Zhejiang Kingland Pipeline 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 Zhejiang Kingland i.e., Zhejiang Kingland and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Jiangyin Jianghua
Assuming the 90 days trading horizon Zhejiang Kingland is expected to generate 10.48 times less return on investment than Jiangyin Jianghua. But when comparing it to its historical volatility, Zhejiang Kingland Pipeline is 3.9 times less risky than Jiangyin Jianghua. It trades about 0.11 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,539 in Jiangyin Jianghua Microelectronics on September 3, 2024 and sell it today you would earn a total of 517.00 from holding Jiangyin Jianghua Microelectronics or generate 33.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Zhejiang Kingland |
| Jiangyin Jianghua |
Zhejiang Kingland and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and Jiangyin Jianghua
The main advantage of trading using opposite Zhejiang Kingland and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland 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.| Zhejiang Kingland vs. Gansu Jiu Steel | Zhejiang Kingland vs. Ming Yang Smart | Zhejiang Kingland vs. Aba Chemicals Corp | Zhejiang Kingland vs. Loctek Ergonomic Technology |
| Jiangyin Jianghua vs. Agricultural Bank of | Jiangyin Jianghua vs. China Construction Bank | Jiangyin Jianghua vs. Postal Savings Bank | Jiangyin Jianghua vs. Bank of Communications |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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