Correlation Between Jinsanjiang Silicon and Maoming Petro
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By analyzing existing cross correlation between Jinsanjiang Silicon Material and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Jinsanjiang Silicon and Maoming Petro 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 Jinsanjiang Silicon with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and Maoming Petro.
Diversification Opportunities for Jinsanjiang Silicon and Maoming Petro
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinsanjiang and Maoming is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical and Jinsanjiang Silicon 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 Jinsanjiang Silicon Material are associated (or correlated) with Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of Jinsanjiang Silicon i.e., Jinsanjiang Silicon and Maoming Petro go up and down completely randomly.
Pair Corralation between Jinsanjiang Silicon and Maoming Petro
Assuming the 90 days trading horizon Jinsanjiang Silicon Material is expected to generate 2.1 times more return on investment than Maoming Petro. However, Jinsanjiang Silicon is 2.1 times more volatile than Maoming Petro Chemical Shihua. It trades about -0.11 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about -0.38 per unit of risk. If you would invest 1,139 in Jinsanjiang Silicon Material on October 14, 2024 and sell it today you would lose (158.00) from holding Jinsanjiang Silicon Material or give up 13.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinsanjiang Silicon Material vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Jinsanjiang Silicon |
| Maoming Petro Chemical |
Jinsanjiang Silicon and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinsanjiang Silicon and Maoming Petro
The main advantage of trading using opposite Jinsanjiang Silicon and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro's long position.| Jinsanjiang Silicon vs. AUPU Home Style | Jinsanjiang Silicon vs. Dongfeng Automobile Co | Jinsanjiang Silicon vs. Luolai Home Textile | Jinsanjiang Silicon vs. Xiangyang Automobile Bearing |
| Maoming Petro vs. Tibet Huayu Mining | Maoming Petro vs. Shenzhen AV Display Co | Maoming Petro vs. Guocheng Mining Co | Maoming Petro vs. Shengda Mining 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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