Correlation Between Jinsanjiang Silicon and DR
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By analyzing existing cross correlation between Jinsanjiang Silicon Material and DR Limited, you can compare the effects of market volatilities on Jinsanjiang Silicon and DR 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 DR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and DR.
Diversification Opportunities for Jinsanjiang Silicon and DR
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinsanjiang and DR is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material and DR Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DR Limited 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 DR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DR Limited has no effect on the direction of Jinsanjiang Silicon i.e., Jinsanjiang Silicon and DR go up and down completely randomly.
Pair Corralation between Jinsanjiang Silicon and DR
Assuming the 90 days trading horizon Jinsanjiang Silicon is expected to generate 4.63 times less return on investment than DR. But when comparing it to its historical volatility, Jinsanjiang Silicon Material is 1.08 times less risky than DR. It trades about 0.05 of its potential returns per unit of risk. DR Limited is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,250 in DR Limited on September 3, 2024 and sell it today you would earn a total of 280.00 from holding DR Limited or generate 12.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinsanjiang Silicon Material vs. DR Limited
Performance |
| Timeline |
| Jinsanjiang Silicon |
| DR Limited |
Jinsanjiang Silicon and DR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinsanjiang Silicon and DR
The main advantage of trading using opposite Jinsanjiang Silicon and DR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon position performs unexpectedly, DR 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 DR will offset losses from the drop in DR's long position.| Jinsanjiang Silicon vs. Zijin Mining Group | Jinsanjiang Silicon vs. Baoshan Iron Steel | Jinsanjiang Silicon vs. Hoshine Silicon Ind |
| DR vs. Eastern Communications Co | DR vs. Jinsanjiang Silicon Material | DR vs. Guangdong Shenglu Telecommunication | DR vs. Western Metal 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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