Correlation Between JCET Group and Guangdong Skychem
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By analyzing existing cross correlation between JCET Group Co and Guangdong Skychem Technology, you can compare the effects of market volatilities on JCET Group and Guangdong Skychem 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 JCET Group with a short position of Guangdong Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCET Group and Guangdong Skychem.
Diversification Opportunities for JCET Group and Guangdong Skychem
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JCET and Guangdong is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding JCET Group Co and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem and JCET Group 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 JCET Group Co are associated (or correlated) with Guangdong Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of JCET Group i.e., JCET Group and Guangdong Skychem go up and down completely randomly.
Pair Corralation between JCET Group and Guangdong Skychem
Assuming the 90 days trading horizon JCET Group Co is expected to generate 0.8 times more return on investment than Guangdong Skychem. However, JCET Group Co is 1.25 times less risky than Guangdong Skychem. It trades about 0.1 of its potential returns per unit of risk. Guangdong Skychem Technology is currently generating about -0.05 per unit of risk. If you would invest 3,784 in JCET Group Co on October 15, 2024 and sell it today you would earn a total of 224.00 from holding JCET Group Co or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCET Group Co vs. Guangdong Skychem Technology
Performance |
| Timeline |
| JCET Group |
| Guangdong Skychem |
JCET Group and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCET Group and Guangdong Skychem
The main advantage of trading using opposite JCET Group and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCET Group position performs unexpectedly, Guangdong Skychem 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 Guangdong Skychem will offset losses from the drop in Guangdong Skychem's long position.| JCET Group vs. Xiangyang Automobile Bearing | JCET Group vs. XinJiang GuoTong Pipeline | JCET Group vs. Fujian Wanchen Biotechnology | JCET Group vs. Wuhan Yangtze Communication |
| Guangdong Skychem vs. Huayi Brothers Media | Guangdong Skychem vs. Beijing Enlight Media | Guangdong Skychem vs. Thinkingdom Media Group | Guangdong Skychem vs. Yingde Greatchem Chemicals |
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 Stocks Directory module to find actively traded stocks across global markets.
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