Correlation Between Long Yuan and Jinsanjiang Silicon
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By analyzing existing cross correlation between Long Yuan Construction and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Long Yuan 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 Long Yuan with a short position of Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Long Yuan and Jinsanjiang Silicon.
Diversification Opportunities for Long Yuan and Jinsanjiang Silicon
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Long and Jinsanjiang is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Long Yuan Construction and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon and Long Yuan 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 Long Yuan Construction 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 Long Yuan i.e., Long Yuan and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Long Yuan and Jinsanjiang Silicon
Assuming the 90 days trading horizon Long Yuan Construction is expected to generate 0.77 times more return on investment than Jinsanjiang Silicon. However, Long Yuan Construction is 1.3 times less risky than Jinsanjiang Silicon. It trades about 0.11 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about 0.06 per unit of risk. If you would invest 256.00 in Long Yuan Construction on October 26, 2024 and sell it today you would earn a total of 109.00 from holding Long Yuan Construction or generate 42.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Long Yuan Construction vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Long Yuan Construction |
| Jinsanjiang Silicon |
Long Yuan and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Long Yuan and Jinsanjiang Silicon
The main advantage of trading using opposite Long Yuan and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Long Yuan 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.| Long Yuan vs. Shandong Homey Aquatic | Long Yuan vs. Masterwork Machinery | Long Yuan vs. XCMG Construction Machinery | Long Yuan vs. Ningbo Homelink Eco iTech |
| Jinsanjiang Silicon vs. Zijin Mining Group | Jinsanjiang Silicon vs. Wanhua Chemical Group | Jinsanjiang Silicon vs. Baoshan Iron Steel | Jinsanjiang Silicon vs. Shandong Gold Mining |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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