Correlation Between Changsha Jingjia and Guangdong Skychem
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By analyzing existing cross correlation between Changsha Jingjia Microelectronics and Guangdong Skychem Technology, you can compare the effects of market volatilities on Changsha Jingjia and Guangdong Skychem 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 Changsha Jingjia with a short position of Guangdong Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changsha Jingjia and Guangdong Skychem.
Diversification Opportunities for Changsha Jingjia and Guangdong Skychem
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changsha and Guangdong is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Changsha Jingjia Microelectron and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem and Changsha Jingjia 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 Changsha Jingjia Microelectronics are associated (or correlated) with Guangdong Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of Changsha Jingjia i.e., Changsha Jingjia and Guangdong Skychem go up and down completely randomly.
Pair Corralation between Changsha Jingjia and Guangdong Skychem
Assuming the 90 days trading horizon Changsha Jingjia is expected to generate 1.64 times less return on investment than Guangdong Skychem. In addition to that, Changsha Jingjia is 1.09 times more volatile than Guangdong Skychem Technology. It trades about 0.12 of its total potential returns per unit of risk. Guangdong Skychem Technology is currently generating about 0.21 per unit of volatility. If you would invest 4,990 in Guangdong Skychem Technology on September 27, 2024 and sell it today you would earn a total of 7,465 from holding Guangdong Skychem Technology or generate 149.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changsha Jingjia Microelectron vs. Guangdong Skychem Technology
Performance |
| Timeline |
| Changsha Jingjia Mic |
| Guangdong Skychem |
Changsha Jingjia and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changsha Jingjia and Guangdong Skychem
The main advantage of trading using opposite Changsha Jingjia and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changsha Jingjia position performs unexpectedly, Guangdong Skychem 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 Guangdong Skychem will offset losses from the drop in Guangdong Skychem's long position.| Changsha Jingjia vs. Ming Yang Smart | Changsha Jingjia vs. 159681 | Changsha Jingjia vs. 159005 | Changsha Jingjia vs. Loctek Ergonomic Technology |
| Guangdong Skychem vs. Industrial and Commercial | Guangdong Skychem vs. Kweichow Moutai Co | Guangdong Skychem vs. Agricultural Bank of | Guangdong Skychem vs. China Mobile Limited |
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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