Correlation Between Guangzhou Jointas and Zhuhai Bojay
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Zhuhai Bojay Electronics, you can compare the effects of market volatilities on Guangzhou Jointas and Zhuhai Bojay 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 Guangzhou Jointas with a short position of Zhuhai Bojay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Zhuhai Bojay.
Diversification Opportunities for Guangzhou Jointas and Zhuhai Bojay
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Zhuhai is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Zhuhai Bojay Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuhai Bojay Electronics and Guangzhou Jointas 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 Guangzhou Jointas Chemical are associated (or correlated) with Zhuhai Bojay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuhai Bojay Electronics has no effect on the direction of Guangzhou Jointas i.e., Guangzhou Jointas and Zhuhai Bojay go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Zhuhai Bojay
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to generate 0.82 times more return on investment than Zhuhai Bojay. However, Guangzhou Jointas Chemical is 1.21 times less risky than Zhuhai Bojay. It trades about 0.05 of its potential returns per unit of risk. Zhuhai Bojay Electronics is currently generating about -0.1 per unit of risk. If you would invest 515.00 in Guangzhou Jointas Chemical on October 28, 2024 and sell it today you would earn a total of 9.00 from holding Guangzhou Jointas Chemical or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Zhuhai Bojay Electronics
Performance |
| Timeline |
| Guangzhou Jointas |
| Zhuhai Bojay Electronics |
Guangzhou Jointas and Zhuhai Bojay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Zhuhai Bojay
The main advantage of trading using opposite Guangzhou Jointas and Zhuhai Bojay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas position performs unexpectedly, Zhuhai Bojay 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 Zhuhai Bojay will offset losses from the drop in Zhuhai Bojay's long position.| Guangzhou Jointas vs. Jiangyin Jianghua Microelectronics | Guangzhou Jointas vs. Weihai Honglin Electronic | Guangzhou Jointas vs. Lontium Semiconductor Corp | Guangzhou Jointas vs. Nexchip Semiconductor Corp |
| Zhuhai Bojay vs. Guangzhou Haozhi Industrial | Zhuhai Bojay vs. Xinjiang Communications Construction | Zhuhai Bojay vs. Guocheng Mining Co | Zhuhai Bojay vs. Xinjiang Baodi Mining |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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