Correlation Between Jinsanjiang Silicon and Ningbo Kangqiang
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By analyzing existing cross correlation between Jinsanjiang Silicon Material and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Jinsanjiang Silicon and Ningbo Kangqiang 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 Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and Ningbo Kangqiang.
Diversification Opportunities for Jinsanjiang Silicon and Ningbo Kangqiang
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinsanjiang and Ningbo is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material and Ningbo Kangqiang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Kangqiang Ele 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 Ningbo Kangqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Kangqiang Ele has no effect on the direction of Jinsanjiang Silicon i.e., Jinsanjiang Silicon and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Jinsanjiang Silicon and Ningbo Kangqiang
Assuming the 90 days trading horizon Jinsanjiang Silicon is expected to generate 1.58 times less return on investment than Ningbo Kangqiang. In addition to that, Jinsanjiang Silicon is 1.16 times more volatile than Ningbo Kangqiang Electronics. It trades about 0.02 of its total potential returns per unit of risk. Ningbo Kangqiang Electronics is currently generating about 0.03 per unit of volatility. If you would invest 1,173 in Ningbo Kangqiang Electronics on September 3, 2024 and sell it today you would earn a total of 367.00 from holding Ningbo Kangqiang Electronics or generate 31.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinsanjiang Silicon Material vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Jinsanjiang Silicon |
| Ningbo Kangqiang Ele |
Jinsanjiang Silicon and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinsanjiang Silicon and Ningbo Kangqiang
The main advantage of trading using opposite Jinsanjiang Silicon and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon position performs unexpectedly, Ningbo Kangqiang 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 Ningbo Kangqiang will offset losses from the drop in Ningbo Kangqiang's long position.| Jinsanjiang Silicon vs. Zijin Mining Group | Jinsanjiang Silicon vs. Baoshan Iron Steel | Jinsanjiang Silicon vs. Hoshine Silicon Ind |
| Ningbo Kangqiang vs. GRINM Semiconductor Materials | Ningbo Kangqiang vs. Kangxin New Materials | Ningbo Kangqiang vs. King Strong New Material | Ningbo Kangqiang vs. Guangzhou Tinci Materials |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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