Correlation Between Sichuan Jinshi and Tjk Machinery
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By analyzing existing cross correlation between Sichuan Jinshi Technology and Tjk Machinery Tianjin, you can compare the effects of market volatilities on Sichuan Jinshi and Tjk Machinery 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 Tjk Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Jinshi and Tjk Machinery.
Diversification Opportunities for Sichuan Jinshi and Tjk Machinery
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sichuan and Tjk is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Jinshi Technology and Tjk Machinery Tianjin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tjk Machinery Tianjin 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 Tjk Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tjk Machinery Tianjin has no effect on the direction of Sichuan Jinshi i.e., Sichuan Jinshi and Tjk Machinery go up and down completely randomly.
Pair Corralation between Sichuan Jinshi and Tjk Machinery
Assuming the 90 days trading horizon Sichuan Jinshi Technology is expected to generate 0.59 times more return on investment than Tjk Machinery. However, Sichuan Jinshi Technology is 1.7 times less risky than Tjk Machinery. It trades about 0.3 of its potential returns per unit of risk. Tjk Machinery Tianjin is currently generating about 0.13 per unit of risk. If you would invest 522.00 in Sichuan Jinshi Technology on August 28, 2024 and sell it today you would earn a total of 187.00 from holding Sichuan Jinshi Technology or generate 35.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Jinshi Technology vs. Tjk Machinery Tianjin
Performance |
| Timeline |
| Sichuan Jinshi Technology |
| Tjk Machinery Tianjin |
Sichuan Jinshi and Tjk Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Jinshi and Tjk Machinery
The main advantage of trading using opposite Sichuan Jinshi and Tjk Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Jinshi position performs unexpectedly, Tjk Machinery 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 Tjk Machinery will offset losses from the drop in Tjk Machinery's long position.| Sichuan Jinshi vs. HaiXin Foods Co | Sichuan Jinshi vs. State Grid InformationCommunication | Sichuan Jinshi vs. Liuzhou Chemical Industry | Sichuan Jinshi vs. Milkyway Chemical Supply |
| Tjk Machinery vs. Biwin Storage Technology | Tjk Machinery vs. PetroChina Co Ltd | Tjk Machinery vs. Industrial and Commercial | Tjk Machinery vs. China Construction Bank |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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