Correlation Between Jinsanjiang Silicon and Ming Yang
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By analyzing existing cross correlation between Jinsanjiang Silicon Material and Ming Yang Smart, you can compare the effects of market volatilities on Jinsanjiang Silicon and Ming Yang 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 Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and Ming Yang.
Diversification Opportunities for Jinsanjiang Silicon and Ming Yang
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinsanjiang and Ming is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material and Ming Yang Smart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Yang Smart 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 Ming Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Yang Smart has no effect on the direction of Jinsanjiang Silicon i.e., Jinsanjiang Silicon and Ming Yang go up and down completely randomly.
Pair Corralation between Jinsanjiang Silicon and Ming Yang
Assuming the 90 days trading horizon Jinsanjiang Silicon Material is expected to generate 1.47 times more return on investment than Ming Yang. However, Jinsanjiang Silicon is 1.47 times more volatile than Ming Yang Smart. It trades about 0.02 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.05 per unit of risk. If you would invest 1,182 in Jinsanjiang Silicon Material on September 26, 2024 and sell it today you would earn a total of 66.00 from holding Jinsanjiang Silicon Material or generate 5.58% 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. Ming Yang Smart
Performance |
| Timeline |
| Jinsanjiang Silicon |
| Ming Yang Smart |
Jinsanjiang Silicon and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinsanjiang Silicon and Ming Yang
The main advantage of trading using opposite Jinsanjiang Silicon and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon position performs unexpectedly, Ming Yang 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 Ming Yang will offset losses from the drop in Ming Yang'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 |
| Ming Yang vs. Chengdu Xinzhu RoadBridge | Ming Yang vs. MayAir Technology Co | Ming Yang vs. Longjian Road Bridge | Ming Yang vs. Jinsanjiang Silicon Material |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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