Correlation Between Sichuan Tianqi and JCET Group
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By analyzing existing cross correlation between Sichuan Tianqi Lithium and JCET Group Co, you can compare the effects of market volatilities on Sichuan Tianqi and JCET Group 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 Sichuan Tianqi with a short position of JCET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Tianqi and JCET Group.
Diversification Opportunities for Sichuan Tianqi and JCET Group
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sichuan and JCET is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Tianqi Lithium and JCET Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCET Group and Sichuan Tianqi 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 Sichuan Tianqi Lithium are associated (or correlated) with JCET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCET Group has no effect on the direction of Sichuan Tianqi i.e., Sichuan Tianqi and JCET Group go up and down completely randomly.
Pair Corralation between Sichuan Tianqi and JCET Group
Assuming the 90 days trading horizon Sichuan Tianqi is expected to generate 1.37 times less return on investment than JCET Group. In addition to that, Sichuan Tianqi is 1.18 times more volatile than JCET Group Co. It trades about 0.05 of its total potential returns per unit of risk. JCET Group Co is currently generating about 0.07 per unit of volatility. If you would invest 3,137 in JCET Group Co on September 27, 2024 and sell it today you would earn a total of 756.00 from holding JCET Group Co or generate 24.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Tianqi Lithium vs. JCET Group Co
Performance |
| Timeline |
| Sichuan Tianqi Lithium |
| JCET Group |
Sichuan Tianqi and JCET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Tianqi and JCET Group
The main advantage of trading using opposite Sichuan Tianqi and JCET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Tianqi position performs unexpectedly, JCET Group 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 JCET Group will offset losses from the drop in JCET Group's long position.| Sichuan Tianqi vs. Zijin Mining Group | Sichuan Tianqi vs. Baoshan Iron Steel | Sichuan Tianqi vs. Shandong Gold Mining | Sichuan Tianqi vs. Rongsheng Petrochemical Co |
| JCET Group vs. Dhc Software Co | JCET Group vs. Xinya Electronic Co | JCET Group vs. Fuzhou Rockchip Electronics | JCET Group vs. Kuang Chi Technologies |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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