Correlation Between Jinsanjiang Silicon and Bank of Communications
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By analyzing existing cross correlation between Jinsanjiang Silicon Material and Bank of Communications, you can compare the effects of market volatilities on Jinsanjiang Silicon and Bank of Communications 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 Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and Bank of Communications.
Diversification Opportunities for Jinsanjiang Silicon and Bank of Communications
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jinsanjiang and Bank is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications 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 Bank of Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Communications has no effect on the direction of Jinsanjiang Silicon i.e., Jinsanjiang Silicon and Bank of Communications go up and down completely randomly.
Pair Corralation between Jinsanjiang Silicon and Bank of Communications
Assuming the 90 days trading horizon Jinsanjiang Silicon Material is expected to generate 2.82 times more return on investment than Bank of Communications. However, Jinsanjiang Silicon is 2.82 times more volatile than Bank of Communications. It trades about 0.05 of its potential returns per unit of risk. Bank of Communications is currently generating about 0.06 per unit of risk. If you would invest 822.00 in Jinsanjiang Silicon Material on October 29, 2024 and sell it today you would earn a total of 268.00 from holding Jinsanjiang Silicon Material or generate 32.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinsanjiang Silicon Material vs. Bank of Communications
Performance |
| Timeline |
| Jinsanjiang Silicon |
| Bank of Communications |
Jinsanjiang Silicon and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinsanjiang Silicon and Bank of Communications
The main advantage of trading using opposite Jinsanjiang Silicon and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon position performs unexpectedly, Bank of Communications 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 Bank of Communications will offset losses from the drop in Bank of Communications' long position.| Jinsanjiang Silicon vs. Guangzhou Haozhi Industrial | Jinsanjiang Silicon vs. Jinhe Biotechnology Co | Jinsanjiang Silicon vs. Western Metal Materials | Jinsanjiang Silicon vs. Xinjiang Baodi Mining |
| Bank of Communications vs. HUAQIN TECHNOLOGY LTD | Bank of Communications vs. Linktel Technologies Co | Bank of Communications vs. Shenzhen Urban Transport | Bank of Communications vs. Dhc Software 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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