Correlation Between Sichuan Jinshi and Western Superconducting
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By analyzing existing cross correlation between Sichuan Jinshi Technology and Western Superconducting Tech, you can compare the effects of market volatilities on Sichuan Jinshi and Western Superconducting 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 Western Superconducting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Jinshi and Western Superconducting.
Diversification Opportunities for Sichuan Jinshi and Western Superconducting
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sichuan and Western is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Jinshi Technology and Western Superconducting Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Superconducting 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 Western Superconducting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Superconducting has no effect on the direction of Sichuan Jinshi i.e., Sichuan Jinshi and Western Superconducting go up and down completely randomly.
Pair Corralation between Sichuan Jinshi and Western Superconducting
Assuming the 90 days trading horizon Sichuan Jinshi is expected to generate 1.32 times less return on investment than Western Superconducting. But when comparing it to its historical volatility, Sichuan Jinshi Technology is 1.0 times less risky than Western Superconducting. It trades about 0.04 of its potential returns per unit of risk. Western Superconducting Tech is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,545 in Western Superconducting Tech on August 28, 2024 and sell it today you would earn a total of 914.00 from holding Western Superconducting Tech or generate 25.78% 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. Western Superconducting Tech
Performance |
| Timeline |
| Sichuan Jinshi Technology |
| Western Superconducting |
Sichuan Jinshi and Western Superconducting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Jinshi and Western Superconducting
The main advantage of trading using opposite Sichuan Jinshi and Western Superconducting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Jinshi position performs unexpectedly, Western Superconducting 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 Western Superconducting will offset losses from the drop in Western Superconducting'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 |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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