Correlation Between Hunan Tyen and Jinsanjiang Silicon
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By analyzing existing cross correlation between Hunan Tyen Machinery and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Hunan Tyen 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 Hunan Tyen with a short position of Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Tyen and Jinsanjiang Silicon.
Diversification Opportunities for Hunan Tyen and Jinsanjiang Silicon
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hunan and Jinsanjiang is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Tyen Machinery and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon and Hunan Tyen 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 Hunan Tyen Machinery 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 Hunan Tyen i.e., Hunan Tyen and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Hunan Tyen and Jinsanjiang Silicon
Assuming the 90 days trading horizon Hunan Tyen Machinery is expected to generate 0.8 times more return on investment than Jinsanjiang Silicon. However, Hunan Tyen Machinery is 1.25 times less risky than Jinsanjiang Silicon. It trades about -0.06 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about -0.05 per unit of risk. If you would invest 550.00 in Hunan Tyen Machinery on October 11, 2024 and sell it today you would lose (39.00) from holding Hunan Tyen Machinery or give up 7.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Tyen Machinery vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Hunan Tyen Machinery |
| Jinsanjiang Silicon |
Hunan Tyen and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Tyen and Jinsanjiang Silicon
The main advantage of trading using opposite Hunan Tyen and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Tyen 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.| Hunan Tyen vs. Postal Savings Bank | Hunan Tyen vs. Chengdu Spaceon Electronics | Hunan Tyen vs. Ningbo Tech Bank Co | Hunan Tyen vs. Xiamen Bank Co |
| Jinsanjiang Silicon vs. Guocheng Mining Co | Jinsanjiang Silicon vs. Shenyang Blue Silver | Jinsanjiang Silicon vs. Jinhui Mining Co | Jinsanjiang Silicon vs. Anhui Transport Consulting |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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