Correlation Between Zhongzhu Medical and Jiangyin Jianghua
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By analyzing existing cross correlation between Zhongzhu Medical Holdings and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Zhongzhu Medical and Jiangyin Jianghua 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 Zhongzhu Medical with a short position of Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongzhu Medical and Jiangyin Jianghua.
Diversification Opportunities for Zhongzhu Medical and Jiangyin Jianghua
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongzhu and Jiangyin is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Zhongzhu Medical Holdings and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua and Zhongzhu Medical 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 Zhongzhu Medical Holdings are associated (or correlated) with Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of Zhongzhu Medical i.e., Zhongzhu Medical and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Zhongzhu Medical and Jiangyin Jianghua
Assuming the 90 days trading horizon Zhongzhu Medical Holdings is expected to under-perform the Jiangyin Jianghua. But the stock apears to be less risky and, when comparing its historical volatility, Zhongzhu Medical Holdings is 1.4 times less risky than Jiangyin Jianghua. The stock trades about -0.03 of its potential returns per unit of risk. The Jiangyin Jianghua Microelectronics is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,708 in Jiangyin Jianghua Microelectronics on October 19, 2024 and sell it today you would lose (83.00) from holding Jiangyin Jianghua Microelectronics or give up 4.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongzhu Medical Holdings vs. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Zhongzhu Medical Holdings |
| Jiangyin Jianghua |
Zhongzhu Medical and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongzhu Medical and Jiangyin Jianghua
The main advantage of trading using opposite Zhongzhu Medical and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongzhu Medical position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua's long position.| Zhongzhu Medical vs. Mengtian Home Group | Zhongzhu Medical vs. Zoy Home Furnishing | Zhongzhu Medical vs. Eastroc Beverage Group | Zhongzhu Medical vs. Qumei Furniture Group |
| Jiangyin Jianghua vs. Shaanxi Construction Machinery | Jiangyin Jianghua vs. Allied Machinery Co | Jiangyin Jianghua vs. Huasi Agricultural Development | Jiangyin Jianghua vs. Jiangsu Yanghe Brewery |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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