Correlation Between Super Dragon and Jinsanjiang Silicon
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By analyzing existing cross correlation between Super Dragon Engineering Plastics and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Super Dragon and Jinsanjiang Silicon 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 Super Dragon with a short position of Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Dragon and Jinsanjiang Silicon.
Diversification Opportunities for Super Dragon and Jinsanjiang Silicon
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Super and Jinsanjiang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Super Dragon Engineering Plast and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon and Super Dragon 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 Super Dragon Engineering Plastics are associated (or correlated) with Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Super Dragon i.e., Super Dragon and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Super Dragon and Jinsanjiang Silicon
Assuming the 90 days trading horizon Super Dragon is expected to generate 2.1 times less return on investment than Jinsanjiang Silicon. But when comparing it to its historical volatility, Super Dragon Engineering Plastics is 1.02 times less risky than Jinsanjiang Silicon. It trades about 0.01 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,021 in Jinsanjiang Silicon Material on September 3, 2024 and sell it today you would earn a total of 130.00 from holding Jinsanjiang Silicon Material or generate 12.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Dragon Engineering Plast vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Super Dragon Enginee |
| Jinsanjiang Silicon |
Super Dragon and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Dragon and Jinsanjiang Silicon
The main advantage of trading using opposite Super Dragon and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Dragon position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.| Super Dragon vs. Cultural Investment Holdings | Super Dragon vs. Gome Telecom Equipment | Super Dragon vs. Bus Online Co | Super Dragon vs. Holitech Technology Co |
| Jinsanjiang Silicon vs. Zijin Mining Group | Jinsanjiang Silicon vs. Wanhua Chemical Group | Jinsanjiang Silicon vs. Baoshan Iron Steel | Jinsanjiang Silicon vs. Rongsheng Petrochemical 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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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