Correlation Between Jinsanjiang Silicon and Guangzhou Ruoyuchen
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By analyzing existing cross correlation between Jinsanjiang Silicon Material and Guangzhou Ruoyuchen Information, you can compare the effects of market volatilities on Jinsanjiang Silicon and Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and Guangzhou Ruoyuchen.
Diversification Opportunities for Jinsanjiang Silicon and Guangzhou Ruoyuchen
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jinsanjiang and Guangzhou is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material and Guangzhou Ruoyuchen Informatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Ruoyuchen has no effect on the direction of Jinsanjiang Silicon i.e., Jinsanjiang Silicon and Guangzhou Ruoyuchen go up and down completely randomly.
Pair Corralation between Jinsanjiang Silicon and Guangzhou Ruoyuchen
Assuming the 90 days trading horizon Jinsanjiang Silicon Material is expected to generate 1.01 times more return on investment than Guangzhou Ruoyuchen. However, Jinsanjiang Silicon is 1.01 times more volatile than Guangzhou Ruoyuchen Information. It trades about -0.12 of its potential returns per unit of risk. Guangzhou Ruoyuchen Information is currently generating about -0.12 per unit of risk. If you would invest 1,227 in Jinsanjiang Silicon Material on October 30, 2024 and sell it today you would lose (145.00) from holding Jinsanjiang Silicon Material or give up 11.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinsanjiang Silicon Material vs. Guangzhou Ruoyuchen Informatio
Performance |
| Timeline |
| Jinsanjiang Silicon |
| Guangzhou Ruoyuchen |
Jinsanjiang Silicon and Guangzhou Ruoyuchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinsanjiang Silicon and Guangzhou Ruoyuchen
The main advantage of trading using opposite Jinsanjiang Silicon and Guangzhou Ruoyuchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon position performs unexpectedly, Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen will offset losses from the drop in Guangzhou Ruoyuchen's long position.| Jinsanjiang Silicon vs. Zijin Mining Group | Jinsanjiang Silicon vs. Wanhua Chemical Group | Jinsanjiang Silicon vs. Baoshan Iron Steel | Jinsanjiang Silicon vs. Shandong Gold Mining |
| Guangzhou Ruoyuchen vs. China Petroleum Chemical | Guangzhou Ruoyuchen vs. PetroChina Co Ltd | Guangzhou Ruoyuchen vs. China State Construction | Guangzhou Ruoyuchen vs. China Railway Group |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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