Correlation Between Jonjee Hi and Shengda Mining
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By analyzing existing cross correlation between Jonjee Hi tech Industrial and Shengda Mining Co, you can compare the effects of market volatilities on Jonjee Hi and Shengda Mining 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 Jonjee Hi with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jonjee Hi and Shengda Mining.
Diversification Opportunities for Jonjee Hi and Shengda Mining
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jonjee and Shengda is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jonjee Hi tech Industrial and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Jonjee Hi 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 Jonjee Hi tech Industrial are associated (or correlated) with Shengda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengda Mining has no effect on the direction of Jonjee Hi i.e., Jonjee Hi and Shengda Mining go up and down completely randomly.
Pair Corralation between Jonjee Hi and Shengda Mining
Assuming the 90 days trading horizon Jonjee Hi tech Industrial is expected to under-perform the Shengda Mining. In addition to that, Jonjee Hi is 1.03 times more volatile than Shengda Mining Co. It trades about -0.33 of its total potential returns per unit of risk. Shengda Mining Co is currently generating about -0.06 per unit of volatility. If you would invest 1,287 in Shengda Mining Co on October 16, 2024 and sell it today you would lose (27.00) from holding Shengda Mining Co or give up 2.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jonjee Hi tech Industrial vs. Shengda Mining Co
Performance |
| Timeline |
| Jonjee Hi tech |
| Shengda Mining |
Jonjee Hi and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jonjee Hi and Shengda Mining
The main advantage of trading using opposite Jonjee Hi and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jonjee Hi position performs unexpectedly, Shengda Mining 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 Shengda Mining will offset losses from the drop in Shengda Mining's long position.| Jonjee Hi vs. Industrial and Commercial | Jonjee Hi vs. Agricultural Bank of | Jonjee Hi vs. China Construction Bank | Jonjee Hi vs. Bank of China |
| Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Wanhua Chemical Group | Shengda Mining vs. Baoshan Iron Steel | Shengda Mining 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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