Correlation Between Sichuan Jinshi and North Huajin
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By analyzing existing cross correlation between Sichuan Jinshi Technology and North Huajin Chemical, you can compare the effects of market volatilities on Sichuan Jinshi and North Huajin 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 Sichuan Jinshi with a short position of North Huajin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Jinshi and North Huajin.
Diversification Opportunities for Sichuan Jinshi and North Huajin
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and North is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Jinshi Technology and North Huajin Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Huajin Chemical and Sichuan Jinshi 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 Sichuan Jinshi Technology are associated (or correlated) with North Huajin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Huajin Chemical has no effect on the direction of Sichuan Jinshi i.e., Sichuan Jinshi and North Huajin go up and down completely randomly.
Pair Corralation between Sichuan Jinshi and North Huajin
Assuming the 90 days trading horizon Sichuan Jinshi Technology is expected to generate 1.05 times more return on investment than North Huajin. However, Sichuan Jinshi is 1.05 times more volatile than North Huajin Chemical. It trades about 0.0 of its potential returns per unit of risk. North Huajin Chemical is currently generating about -0.02 per unit of risk. If you would invest 838.00 in Sichuan Jinshi Technology on October 9, 2024 and sell it today you would lose (149.00) from holding Sichuan Jinshi Technology or give up 17.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Jinshi Technology vs. North Huajin Chemical
Performance |
| Timeline |
| Sichuan Jinshi Technology |
| North Huajin Chemical |
Sichuan Jinshi and North Huajin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Jinshi and North Huajin
The main advantage of trading using opposite Sichuan Jinshi and North Huajin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Jinshi position performs unexpectedly, North Huajin 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 North Huajin will offset losses from the drop in North Huajin's long position.| Sichuan Jinshi vs. Masterwork Machinery | Sichuan Jinshi vs. Zhejiang Publishing Media | Sichuan Jinshi vs. Tengda Construction Group | Sichuan Jinshi vs. Weichai Heavy Machinery |
| North Huajin vs. Zijin Mining Group | North Huajin vs. Wanhua Chemical Group | North Huajin vs. Baoshan Iron Steel | North Huajin vs. Shandong Gold 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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