Correlation Between Guangzhou Hongli and JCET Group
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By analyzing existing cross correlation between Guangzhou Hongli Opto and JCET Group Co, you can compare the effects of market volatilities on Guangzhou Hongli and JCET Group 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 Hongli with a short position of JCET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Hongli and JCET Group.
Diversification Opportunities for Guangzhou Hongli and JCET Group
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and JCET is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Hongli Opto and JCET Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCET Group and Guangzhou Hongli 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 Hongli Opto are associated (or correlated) with JCET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCET Group has no effect on the direction of Guangzhou Hongli i.e., Guangzhou Hongli and JCET Group go up and down completely randomly.
Pair Corralation between Guangzhou Hongli and JCET Group
Assuming the 90 days trading horizon Guangzhou Hongli Opto is expected to generate 1.23 times more return on investment than JCET Group. However, Guangzhou Hongli is 1.23 times more volatile than JCET Group Co. It trades about 0.09 of its potential returns per unit of risk. JCET Group Co is currently generating about 0.07 per unit of risk. If you would invest 559.00 in Guangzhou Hongli Opto on September 26, 2024 and sell it today you would earn a total of 211.00 from holding Guangzhou Hongli Opto or generate 37.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Hongli Opto vs. JCET Group Co
Performance |
| Timeline |
| Guangzhou Hongli Opto |
| JCET Group |
Guangzhou Hongli and JCET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Hongli and JCET Group
The main advantage of trading using opposite Guangzhou Hongli and JCET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Hongli position performs unexpectedly, JCET Group 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 JCET Group will offset losses from the drop in JCET Group's long position.| Guangzhou Hongli vs. Ming Yang Smart | Guangzhou Hongli vs. 159681 | Guangzhou Hongli vs. 159005 | Guangzhou Hongli vs. Loctek Ergonomic Technology |
| JCET Group vs. Dhc Software Co | JCET Group vs. Xinya Electronic Co | JCET Group vs. Fuzhou Rockchip Electronics | JCET Group vs. Kuang Chi Technologies |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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