Correlation Between Jinsanjiang Silicon and Dr Peng
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By analyzing existing cross correlation between Jinsanjiang Silicon Material and Dr Peng Telecom, you can compare the effects of market volatilities on Jinsanjiang Silicon and Dr Peng 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 Peng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and Dr Peng.
Diversification Opportunities for Jinsanjiang Silicon and Dr Peng
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jinsanjiang and 600804 is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material and Dr Peng Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dr Peng Telecom 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 Peng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dr Peng Telecom has no effect on the direction of Jinsanjiang Silicon i.e., Jinsanjiang Silicon and Dr Peng go up and down completely randomly.
Pair Corralation between Jinsanjiang Silicon and Dr Peng
Assuming the 90 days trading horizon Jinsanjiang Silicon Material is expected to under-perform the Dr Peng. In addition to that, Jinsanjiang Silicon is 1.25 times more volatile than Dr Peng Telecom. It trades about -0.11 of its total potential returns per unit of risk. Dr Peng Telecom is currently generating about 0.11 per unit of volatility. If you would invest 180.00 in Dr Peng Telecom on October 25, 2024 and sell it today you would earn a total of 14.00 from holding Dr Peng Telecom or generate 7.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinsanjiang Silicon Material vs. Dr Peng Telecom
Performance |
| Timeline |
| Jinsanjiang Silicon |
| Dr Peng Telecom |
Jinsanjiang Silicon and Dr Peng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinsanjiang Silicon and Dr Peng
The main advantage of trading using opposite Jinsanjiang Silicon and Dr Peng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon position performs unexpectedly, Dr Peng 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 Peng will offset losses from the drop in Dr Peng's long position.| Jinsanjiang Silicon vs. Zijin Mining Group | Jinsanjiang Silicon vs. Wanhua Chemical Group | Jinsanjiang Silicon vs. Baoshan Iron Steel | Jinsanjiang Silicon vs. Rongsheng Petrochemical Co |
| Dr Peng vs. Industrial and Commercial | Dr Peng vs. Agricultural Bank of | Dr Peng vs. China Construction Bank | Dr Peng vs. Bank of China |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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