Correlation Between China Merchants and JCET Group
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By analyzing existing cross correlation between China Merchants Bank and JCET Group Co, you can compare the effects of market volatilities on China Merchants and JCET Group 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 China Merchants with a short position of JCET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and JCET Group.
Diversification Opportunities for China Merchants and JCET Group
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and JCET is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Bank and JCET Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCET Group and China Merchants 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 China Merchants Bank are associated (or correlated) with JCET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCET Group has no effect on the direction of China Merchants i.e., China Merchants and JCET Group go up and down completely randomly.
Pair Corralation between China Merchants and JCET Group
Assuming the 90 days trading horizon China Merchants is expected to generate 1.58 times less return on investment than JCET Group. But when comparing it to its historical volatility, China Merchants Bank is 1.57 times less risky than JCET Group. It trades about 0.07 of its potential returns per unit of risk. JCET Group Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,171 in JCET Group Co on September 26, 2024 and sell it today you would earn a total of 722.00 from holding JCET Group Co or generate 22.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Bank vs. JCET Group Co
Performance |
| Timeline |
| China Merchants Bank |
| JCET Group |
China Merchants and JCET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and JCET Group
The main advantage of trading using opposite China Merchants and JCET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants position performs unexpectedly, JCET Group 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 JCET Group will offset losses from the drop in JCET Group's long position.| China Merchants vs. Kweichow Moutai Co | China Merchants vs. Contemporary Amperex Technology | China Merchants vs. G bits Network Technology | China Merchants vs. BYD Co Ltd |
| JCET Group vs. Dhc Software Co | JCET Group vs. Xinya Electronic Co | JCET Group vs. Fuzhou Rockchip Electronics | JCET Group vs. Kuang Chi Technologies |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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