Correlation Between Jiangsu Hoperun and Sinocelltech
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By analyzing existing cross correlation between Jiangsu Hoperun Software and Sinocelltech Group, you can compare the effects of market volatilities on Jiangsu Hoperun and Sinocelltech 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 Jiangsu Hoperun with a short position of Sinocelltech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Hoperun and Sinocelltech.
Diversification Opportunities for Jiangsu Hoperun and Sinocelltech
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Sinocelltech is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Hoperun Software and Sinocelltech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocelltech Group and Jiangsu Hoperun 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 Jiangsu Hoperun Software are associated (or correlated) with Sinocelltech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocelltech Group has no effect on the direction of Jiangsu Hoperun i.e., Jiangsu Hoperun and Sinocelltech go up and down completely randomly.
Pair Corralation between Jiangsu Hoperun and Sinocelltech
Assuming the 90 days trading horizon Jiangsu Hoperun Software is expected to under-perform the Sinocelltech. In addition to that, Jiangsu Hoperun is 1.64 times more volatile than Sinocelltech Group. It trades about -0.15 of its total potential returns per unit of risk. Sinocelltech Group is currently generating about 0.06 per unit of volatility. If you would invest 3,795 in Sinocelltech Group on September 1, 2024 and sell it today you would earn a total of 105.00 from holding Sinocelltech Group or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Hoperun Software vs. Sinocelltech Group
Performance |
| Timeline |
| Jiangsu Hoperun Software |
| Sinocelltech Group |
Jiangsu Hoperun and Sinocelltech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Hoperun and Sinocelltech
The main advantage of trading using opposite Jiangsu Hoperun and Sinocelltech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Hoperun position performs unexpectedly, Sinocelltech 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 Sinocelltech will offset losses from the drop in Sinocelltech's long position.| Jiangsu Hoperun vs. Agricultural Bank of | Jiangsu Hoperun vs. Industrial and Commercial | Jiangsu Hoperun vs. Bank of China | Jiangsu Hoperun vs. China Construction Bank |
| Sinocelltech vs. PetroChina Co Ltd | Sinocelltech vs. China Mobile Limited | Sinocelltech vs. CNOOC Limited | Sinocelltech vs. Ping An Insurance |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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