Correlation Between Sungrow Power and Jilin Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sungrow Power Supply and Jilin Chemical Fibre, you can compare the effects of market volatilities on Sungrow Power and Jilin Chemical 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 Sungrow Power with a short position of Jilin Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungrow Power and Jilin Chemical.
Diversification Opportunities for Sungrow Power and Jilin Chemical
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sungrow and Jilin is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sungrow Power Supply and Jilin Chemical Fibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Chemical Fibre and Sungrow Power 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 Sungrow Power Supply are associated (or correlated) with Jilin Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Chemical Fibre has no effect on the direction of Sungrow Power i.e., Sungrow Power and Jilin Chemical go up and down completely randomly.
Pair Corralation between Sungrow Power and Jilin Chemical
Assuming the 90 days trading horizon Sungrow Power Supply is expected to generate 1.14 times more return on investment than Jilin Chemical. However, Sungrow Power is 1.14 times more volatile than Jilin Chemical Fibre. It trades about 0.03 of its potential returns per unit of risk. Jilin Chemical Fibre is currently generating about 0.01 per unit of risk. If you would invest 6,620 in Sungrow Power Supply on September 12, 2024 and sell it today you would earn a total of 1,231 from holding Sungrow Power Supply or generate 18.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sungrow Power Supply vs. Jilin Chemical Fibre
Performance |
| Timeline |
| Sungrow Power Supply |
| Jilin Chemical Fibre |
Sungrow Power and Jilin Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungrow Power and Jilin Chemical
The main advantage of trading using opposite Sungrow Power and Jilin Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungrow Power position performs unexpectedly, Jilin Chemical 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 Jilin Chemical will offset losses from the drop in Jilin Chemical's long position.| Sungrow Power vs. Huafa Industrial Co | Sungrow Power vs. Hengdian Entertainment Co | Sungrow Power vs. Shuhua Sports Co | Sungrow Power vs. Sichuan Yahua Industrial |
| Jilin Chemical vs. Zijin Mining Group | Jilin Chemical vs. Wanhua Chemical Group | Jilin Chemical vs. Baoshan Iron Steel | Jilin Chemical vs. Rongsheng Petrochemical 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |