Correlation Between Kangxin New and Jinsanjiang Silicon
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By analyzing existing cross correlation between Kangxin New Materials and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Kangxin New 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 Kangxin New with a short position of Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangxin New and Jinsanjiang Silicon.
Diversification Opportunities for Kangxin New and Jinsanjiang Silicon
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangxin and Jinsanjiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kangxin New Materials and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon and Kangxin New 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 Kangxin New Materials 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 Kangxin New i.e., Kangxin New and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Kangxin New and Jinsanjiang Silicon
Assuming the 90 days trading horizon Kangxin New Materials is expected to under-perform the Jinsanjiang Silicon. But the stock apears to be less risky and, when comparing its historical volatility, Kangxin New Materials is 1.31 times less risky than Jinsanjiang Silicon. The stock trades about -0.01 of its potential returns per unit of risk. The 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 |
Kangxin New Materials vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Kangxin New Materials |
| Jinsanjiang Silicon |
Kangxin New and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangxin New and Jinsanjiang Silicon
The main advantage of trading using opposite Kangxin New and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangxin New 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.| Kangxin New vs. Zijin Mining Group | Kangxin New vs. Wanhua Chemical Group | Kangxin New vs. Baoshan Iron Steel | Kangxin New vs. Rongsheng Petrochemical 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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