Correlation Between Weihai Honglin and Jiangyin Jianghua
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By analyzing existing cross correlation between Weihai Honglin Electronic and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Weihai Honglin and Jiangyin Jianghua 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 Weihai Honglin with a short position of Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Jiangyin Jianghua.
Diversification Opportunities for Weihai Honglin and Jiangyin Jianghua
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Weihai and Jiangyin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua and Weihai Honglin 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 Weihai Honglin Electronic are associated (or correlated) with Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of Weihai Honglin i.e., Weihai Honglin and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Weihai Honglin and Jiangyin Jianghua
Assuming the 90 days trading horizon Weihai Honglin is expected to generate 5.09 times less return on investment than Jiangyin Jianghua. But when comparing it to its historical volatility, Weihai Honglin Electronic is 1.29 times less risky than Jiangyin Jianghua. It trades about 0.03 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,303 in Jiangyin Jianghua Microelectronics on September 1, 2024 and sell it today you would earn a total of 753.00 from holding Jiangyin Jianghua Microelectronics or generate 57.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Jiangyin Jianghua |
Weihai Honglin and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Jiangyin Jianghua
The main advantage of trading using opposite Weihai Honglin and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua's long position.| Weihai Honglin vs. Cultural Investment Holdings | Weihai Honglin vs. Gome Telecom Equipment | Weihai Honglin vs. Bus Online Co | Weihai Honglin vs. Holitech Technology Co |
| Jiangyin Jianghua vs. Zhejiang Kingland Pipeline | Jiangyin Jianghua vs. Anhui Deli Household | Jiangyin Jianghua vs. Chahua Modern Housewares | Jiangyin Jianghua vs. Shandong Mining Machinery |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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