Correlation Between Shanghai Phichem and Jinsanjiang Silicon
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By analyzing existing cross correlation between Shanghai Phichem Material and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Shanghai Phichem and Jinsanjiang Silicon 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 Shanghai Phichem with a short position of Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Phichem and Jinsanjiang Silicon.
Diversification Opportunities for Shanghai Phichem and Jinsanjiang Silicon
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Jinsanjiang is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Phichem Material and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon and Shanghai Phichem 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 Shanghai Phichem Material are associated (or correlated) with Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Shanghai Phichem i.e., Shanghai Phichem and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Shanghai Phichem and Jinsanjiang Silicon
Assuming the 90 days trading horizon Shanghai Phichem Material is expected to generate 0.95 times more return on investment than Jinsanjiang Silicon. However, Shanghai Phichem Material is 1.05 times less risky than Jinsanjiang Silicon. It trades about 0.0 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about 0.0 per unit of risk. If you would invest 1,787 in Shanghai Phichem Material on October 15, 2024 and sell it today you would lose (329.00) from holding Shanghai Phichem Material or give up 18.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Phichem Material vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Shanghai Phichem Material |
| Jinsanjiang Silicon |
Shanghai Phichem and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Phichem and Jinsanjiang Silicon
The main advantage of trading using opposite Shanghai Phichem and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Phichem position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.| Shanghai Phichem vs. Fujian Newland Computer | Shanghai Phichem vs. Telling Telecommunication Holding | Shanghai Phichem vs. Fibocom Wireless | Shanghai Phichem vs. Runjian Communication 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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