Correlation Between Jiangxi Hengda and Dongguan Tarry
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Dongguan Tarry Electronics, you can compare the effects of market volatilities on Jiangxi Hengda and Dongguan Tarry 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 Dongguan Tarry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Dongguan Tarry.
Diversification Opportunities for Jiangxi Hengda and Dongguan Tarry
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiangxi and Dongguan is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and Dongguan Tarry Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Tarry Elect 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 Dongguan Tarry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Tarry Elect has no effect on the direction of Jiangxi Hengda i.e., Jiangxi Hengda and Dongguan Tarry go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Dongguan Tarry
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to under-perform the Dongguan Tarry. In addition to that, Jiangxi Hengda is 1.33 times more volatile than Dongguan Tarry Electronics. It trades about -0.15 of its total potential returns per unit of risk. Dongguan Tarry Electronics is currently generating about -0.15 per unit of volatility. If you would invest 7,524 in Dongguan Tarry Electronics on October 21, 2024 and sell it today you would lose (834.00) from holding Dongguan Tarry Electronics or give up 11.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. Dongguan Tarry Electronics
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| Dongguan Tarry Elect |
Jiangxi Hengda and Dongguan Tarry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and Dongguan Tarry
The main advantage of trading using opposite Jiangxi Hengda and Dongguan Tarry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda position performs unexpectedly, Dongguan Tarry 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 Dongguan Tarry will offset losses from the drop in Dongguan Tarry's long position.| Jiangxi Hengda vs. Sinomach Automobile Co | Jiangxi Hengda vs. Unisplendour Corp | Jiangxi Hengda vs. Anhui Jianghuai Automobile | Jiangxi Hengda vs. Fiberhome Telecommunication Technologies |
| Dongguan Tarry vs. Tonghua Grape Wine | Dongguan Tarry vs. Jiangxi Hengda Hi Tech | Dongguan Tarry vs. Unisplendour Corp | Dongguan Tarry 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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