Correlation Between Dongfeng Automobile and Jinsanjiang Silicon
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By analyzing existing cross correlation between Dongfeng Automobile Co and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Dongfeng Automobile 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 Dongfeng Automobile with a short position of Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Jinsanjiang Silicon.
Diversification Opportunities for Dongfeng Automobile and Jinsanjiang Silicon
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongfeng and Jinsanjiang is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon and Dongfeng Automobile 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 Dongfeng Automobile Co 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 Dongfeng Automobile i.e., Dongfeng Automobile and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Jinsanjiang Silicon
Assuming the 90 days trading horizon Dongfeng Automobile Co is expected to under-perform the Jinsanjiang Silicon. But the stock apears to be less risky and, when comparing its historical volatility, Dongfeng Automobile Co is 1.48 times less risky than Jinsanjiang Silicon. The stock trades about -0.28 of its potential returns per unit of risk. The Jinsanjiang Silicon Material is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 1,139 in Jinsanjiang Silicon Material on October 14, 2024 and sell it today you would lose (158.00) from holding Jinsanjiang Silicon Material or give up 13.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Dongfeng Automobile |
| Jinsanjiang Silicon |
Dongfeng Automobile and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Jinsanjiang Silicon
The main advantage of trading using opposite Dongfeng Automobile and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile 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.| Dongfeng Automobile vs. Jiangsu Yueda Investment | Dongfeng Automobile vs. Hunan Mendale Hometextile | Dongfeng Automobile vs. Zoy Home Furnishing | Dongfeng Automobile vs. Markor International Home |
| Jinsanjiang Silicon vs. AUPU Home Style | Jinsanjiang Silicon vs. Dongfeng Automobile Co | Jinsanjiang Silicon vs. Luolai Home Textile | Jinsanjiang Silicon vs. Xiangyang Automobile Bearing |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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