Correlation Between Dongguan Tarry and Jiangyin Jianghua
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By analyzing existing cross correlation between Dongguan Tarry Electronics and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Dongguan Tarry and Jiangyin Jianghua 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 Dongguan Tarry with a short position of Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Tarry and Jiangyin Jianghua.
Diversification Opportunities for Dongguan Tarry and Jiangyin Jianghua
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongguan and Jiangyin is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Tarry Electronics and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua and Dongguan Tarry 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 Dongguan Tarry Electronics are associated (or correlated) with Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of Dongguan Tarry i.e., Dongguan Tarry and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Dongguan Tarry and Jiangyin Jianghua
Assuming the 90 days trading horizon Dongguan Tarry is expected to generate 1.14 times less return on investment than Jiangyin Jianghua. In addition to that, Dongguan Tarry is 1.19 times more volatile than Jiangyin Jianghua Microelectronics. It trades about 0.08 of its total potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about 0.11 per unit of volatility. If you would invest 1,287 in Jiangyin Jianghua Microelectronics on September 3, 2024 and sell it today you would earn a total of 769.00 from holding Jiangyin Jianghua Microelectronics or generate 59.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Tarry Electronics vs. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Dongguan Tarry Elect |
| Jiangyin Jianghua |
Dongguan Tarry and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Tarry and Jiangyin Jianghua
The main advantage of trading using opposite Dongguan Tarry and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Tarry position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua's long position.| Dongguan Tarry vs. Cultural Investment Holdings | Dongguan Tarry vs. Gome Telecom Equipment | Dongguan Tarry vs. Bus Online Co | Dongguan Tarry vs. Holitech Technology Co |
| Jiangyin Jianghua vs. Agricultural Bank of | Jiangyin Jianghua vs. China Construction Bank | Jiangyin Jianghua vs. Postal Savings Bank | Jiangyin Jianghua vs. Bank of Communications |
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.
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