Correlation Between Jiangxi Hengda and Sichuan Yahua
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Sichuan Yahua Industrial, you can compare the effects of market volatilities on Jiangxi Hengda and Sichuan Yahua 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 Jiangxi Hengda with a short position of Sichuan Yahua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Sichuan Yahua.
Diversification Opportunities for Jiangxi Hengda and Sichuan Yahua
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangxi and Sichuan is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and Sichuan Yahua Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Yahua Industrial and Jiangxi Hengda 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 Jiangxi Hengda Hi Tech are associated (or correlated) with Sichuan Yahua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Yahua Industrial has no effect on the direction of Jiangxi Hengda i.e., Jiangxi Hengda and Sichuan Yahua go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Sichuan Yahua
Assuming the 90 days trading horizon Jiangxi Hengda is expected to generate 1.52 times less return on investment than Sichuan Yahua. In addition to that, Jiangxi Hengda is 1.22 times more volatile than Sichuan Yahua Industrial. It trades about 0.17 of its total potential returns per unit of risk. Sichuan Yahua Industrial is currently generating about 0.32 per unit of volatility. If you would invest 1,135 in Sichuan Yahua Industrial on November 5, 2024 and sell it today you would earn a total of 181.00 from holding Sichuan Yahua Industrial or generate 15.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. Sichuan Yahua Industrial
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| Sichuan Yahua Industrial |
Jiangxi Hengda and Sichuan Yahua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and Sichuan Yahua
The main advantage of trading using opposite Jiangxi Hengda and Sichuan Yahua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda position performs unexpectedly, Sichuan Yahua 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 Sichuan Yahua will offset losses from the drop in Sichuan Yahua's long position.| Jiangxi Hengda vs. Ping An Insurance | Jiangxi Hengda vs. Shenyang Chemical Industry | Jiangxi Hengda vs. Shenzhen Noposion Agrochemicals | Jiangxi Hengda vs. Southchip Semiconductor Technology |
| Sichuan Yahua vs. Goodwill E Health | Sichuan Yahua vs. Huatian Hotel Group | Sichuan Yahua vs. Jiangsu Financial Leasing | Sichuan Yahua vs. Xiamen Bank 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 Stocks Directory module to find actively traded stocks across global markets.
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