Correlation Between Jinsanjiang Silicon and Suzhou Mingzhi
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By analyzing existing cross correlation between Jinsanjiang Silicon Material and Suzhou Mingzhi Technology, you can compare the effects of market volatilities on Jinsanjiang Silicon and Suzhou Mingzhi 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 Suzhou Mingzhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and Suzhou Mingzhi.
Diversification Opportunities for Jinsanjiang Silicon and Suzhou Mingzhi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinsanjiang and Suzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material and Suzhou Mingzhi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Mingzhi Technology 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 Suzhou Mingzhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Mingzhi Technology has no effect on the direction of Jinsanjiang Silicon i.e., Jinsanjiang Silicon and Suzhou Mingzhi go up and down completely randomly.
Pair Corralation between Jinsanjiang Silicon and Suzhou Mingzhi
Assuming the 90 days trading horizon Jinsanjiang Silicon Material is expected to generate 1.08 times more return on investment than Suzhou Mingzhi. However, Jinsanjiang Silicon is 1.08 times more volatile than Suzhou Mingzhi Technology. It trades about 0.03 of its potential returns per unit of risk. Suzhou Mingzhi Technology is currently generating about -0.01 per unit of risk. If you would invest 955.00 in Jinsanjiang Silicon Material on September 13, 2024 and sell it today you would earn a total of 211.00 from holding Jinsanjiang Silicon Material or generate 22.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinsanjiang Silicon Material vs. Suzhou Mingzhi Technology
Performance |
| Timeline |
| Jinsanjiang Silicon |
| Suzhou Mingzhi Technology |
Jinsanjiang Silicon and Suzhou Mingzhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinsanjiang Silicon and Suzhou Mingzhi
The main advantage of trading using opposite Jinsanjiang Silicon and Suzhou Mingzhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon position performs unexpectedly, Suzhou Mingzhi 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 Suzhou Mingzhi will offset losses from the drop in Suzhou Mingzhi'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 |
| Suzhou Mingzhi vs. Ming Yang Smart | Suzhou Mingzhi vs. 159681 | Suzhou Mingzhi vs. 159005 | Suzhou Mingzhi vs. Loctek Ergonomic Technology |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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