Correlation Between Huafa Industrial and Jonjee Hi
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By analyzing existing cross correlation between Huafa Industrial Co and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on Huafa Industrial and Jonjee Hi 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 Huafa Industrial with a short position of Jonjee Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huafa Industrial and Jonjee Hi.
Diversification Opportunities for Huafa Industrial and Jonjee Hi
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huafa and Jonjee is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Huafa Industrial Co and Jonjee Hi tech Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jonjee Hi tech and Huafa Industrial 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 Huafa Industrial Co are associated (or correlated) with Jonjee Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jonjee Hi tech has no effect on the direction of Huafa Industrial i.e., Huafa Industrial and Jonjee Hi go up and down completely randomly.
Pair Corralation between Huafa Industrial and Jonjee Hi
Assuming the 90 days trading horizon Huafa Industrial Co is expected to generate 1.14 times more return on investment than Jonjee Hi. However, Huafa Industrial is 1.14 times more volatile than Jonjee Hi tech Industrial. It trades about -0.02 of its potential returns per unit of risk. Jonjee Hi tech Industrial is currently generating about -0.04 per unit of risk. If you would invest 957.00 in Huafa Industrial Co on September 3, 2024 and sell it today you would lose (285.00) from holding Huafa Industrial Co or give up 29.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huafa Industrial Co vs. Jonjee Hi tech Industrial
Performance |
| Timeline |
| Huafa Industrial |
| Jonjee Hi tech |
Huafa Industrial and Jonjee Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huafa Industrial and Jonjee Hi
The main advantage of trading using opposite Huafa Industrial and Jonjee Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huafa Industrial position performs unexpectedly, Jonjee Hi 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 Jonjee Hi will offset losses from the drop in Jonjee Hi's long position.| Huafa Industrial vs. Industrial and Commercial | Huafa Industrial vs. China Construction Bank | Huafa Industrial vs. Bank of China | Huafa Industrial vs. Agricultural Bank of |
| Jonjee Hi vs. Beijing Wantai Biological | Jonjee Hi vs. Aluminum Corp of | Jonjee Hi vs. COL Digital Publishing | Jonjee Hi vs. Shaanxi Meineng Clean |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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