Correlation Between Xinjiang Communications and Jonjee Hi
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By analyzing existing cross correlation between Xinjiang Communications Construction and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on Xinjiang Communications and Jonjee Hi 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 Xinjiang Communications with a short position of Jonjee Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Jonjee Hi.
Diversification Opportunities for Xinjiang Communications and Jonjee Hi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Jonjee is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Jonjee Hi tech Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jonjee Hi tech and Xinjiang Communications 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 Xinjiang Communications Construction are associated (or correlated) with Jonjee Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jonjee Hi tech has no effect on the direction of Xinjiang Communications i.e., Xinjiang Communications and Jonjee Hi go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Jonjee Hi
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 1.32 times more return on investment than Jonjee Hi. However, Xinjiang Communications is 1.32 times more volatile than Jonjee Hi tech Industrial. It trades about 0.02 of its potential returns per unit of risk. Jonjee Hi tech Industrial is currently generating about -0.04 per unit of risk. If you would invest 1,269 in Xinjiang Communications Construction on September 4, 2024 and sell it today you would earn a total of 16.00 from holding Xinjiang Communications Construction or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. Jonjee Hi tech Industrial
Performance |
| Timeline |
| Xinjiang Communications |
| Jonjee Hi tech |
Xinjiang Communications and Jonjee Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Jonjee Hi
The main advantage of trading using opposite Xinjiang Communications and Jonjee Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications position performs unexpectedly, Jonjee Hi 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 Jonjee Hi will offset losses from the drop in Jonjee Hi's long position.| Xinjiang Communications vs. China Life Insurance | Xinjiang Communications vs. Cinda Securities Co | Xinjiang Communications vs. Piotech Inc A | Xinjiang Communications vs. Dongxing Sec Co |
| Jonjee Hi vs. Poly Real Estate | Jonjee Hi vs. China Vanke Co | Jonjee Hi vs. China Merchants Shekou | Jonjee Hi vs. Huafa Industrial 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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