Correlation Between Xiamen Jihong and Guangzhou Jointas
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By analyzing existing cross correlation between Xiamen Jihong Package and Guangzhou Jointas Chemical, you can compare the effects of market volatilities on Xiamen Jihong and Guangzhou Jointas 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 Xiamen Jihong with a short position of Guangzhou Jointas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Guangzhou Jointas.
Diversification Opportunities for Xiamen Jihong and Guangzhou Jointas
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiamen and Guangzhou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Guangzhou Jointas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jointas and Xiamen Jihong 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 Xiamen Jihong Package are associated (or correlated) with Guangzhou Jointas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jointas has no effect on the direction of Xiamen Jihong i.e., Xiamen Jihong and Guangzhou Jointas go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Guangzhou Jointas
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to under-perform the Guangzhou Jointas. In addition to that, Xiamen Jihong is 1.01 times more volatile than Guangzhou Jointas Chemical. It trades about -0.02 of its total potential returns per unit of risk. Guangzhou Jointas Chemical is currently generating about 0.0 per unit of volatility. If you would invest 526.00 in Guangzhou Jointas Chemical on October 12, 2024 and sell it today you would lose (40.00) from holding Guangzhou Jointas Chemical or give up 7.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Guangzhou Jointas Chemical
Performance |
| Timeline |
| Xiamen Jihong Package |
| Guangzhou Jointas |
Xiamen Jihong and Guangzhou Jointas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Guangzhou Jointas
The main advantage of trading using opposite Xiamen Jihong and Guangzhou Jointas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong position performs unexpectedly, Guangzhou Jointas 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 Guangzhou Jointas will offset losses from the drop in Guangzhou Jointas' long position.| Xiamen Jihong vs. Shenzhen Centralcon Investment | Xiamen Jihong vs. Changchun UP Optotech | Xiamen Jihong vs. Tianshui Huatian Technology | Xiamen Jihong vs. Zoje Resources Investment |
| Guangzhou Jointas vs. Qumei Furniture Group | Guangzhou Jointas vs. Songz Automobile Air | Guangzhou Jointas vs. Zoy Home Furnishing | Guangzhou Jointas vs. Ningbo Fangzheng Automobile |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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