Correlation Between HeBei Jinniu and Success Electronics
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By analyzing existing cross correlation between HeBei Jinniu Chemical and Success Electronics, you can compare the effects of market volatilities on HeBei Jinniu and Success Electronics 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 HeBei Jinniu with a short position of Success Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeBei Jinniu and Success Electronics.
Diversification Opportunities for HeBei Jinniu and Success Electronics
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HeBei and Success is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding HeBei Jinniu Chemical and Success Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Success Electronics and HeBei Jinniu 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 HeBei Jinniu Chemical are associated (or correlated) with Success Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Success Electronics has no effect on the direction of HeBei Jinniu i.e., HeBei Jinniu and Success Electronics go up and down completely randomly.
Pair Corralation between HeBei Jinniu and Success Electronics
Assuming the 90 days trading horizon HeBei Jinniu Chemical is expected to generate 1.02 times more return on investment than Success Electronics. However, HeBei Jinniu is 1.02 times more volatile than Success Electronics. It trades about 0.03 of its potential returns per unit of risk. Success Electronics is currently generating about -0.03 per unit of risk. If you would invest 496.00 in HeBei Jinniu Chemical on October 16, 2024 and sell it today you would earn a total of 69.00 from holding HeBei Jinniu Chemical or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeBei Jinniu Chemical vs. Success Electronics
Performance |
| Timeline |
| HeBei Jinniu Chemical |
| Success Electronics |
HeBei Jinniu and Success Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeBei Jinniu and Success Electronics
The main advantage of trading using opposite HeBei Jinniu and Success Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeBei Jinniu position performs unexpectedly, Success Electronics 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 Success Electronics will offset losses from the drop in Success Electronics' long position.| HeBei Jinniu vs. Beijing YanDong MicroElectronic | HeBei Jinniu vs. Ningbo Kangqiang Electronics | HeBei Jinniu vs. Hefei Metalforming Mach | HeBei Jinniu vs. Guangdong Jingyi Metal |
| Success Electronics vs. Guangdong Shenglu Telecommunication | Success Electronics vs. Wuhan Yangtze Communication | Success Electronics vs. Tibet Huayu Mining | Success Electronics vs. Guocheng Mining Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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