Correlation Between Jonjee Hi-tech and Western Metal
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jonjee Hi tech Industrial and Western Metal Materials, you can compare the effects of market volatilities on Jonjee Hi-tech and Western Metal 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-tech with a short position of Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jonjee Hi-tech and Western Metal.
Diversification Opportunities for Jonjee Hi-tech and Western Metal
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jonjee and Western is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jonjee Hi tech Industrial and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials and Jonjee Hi-tech 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 Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of Jonjee Hi-tech i.e., Jonjee Hi-tech and Western Metal go up and down completely randomly.
Pair Corralation between Jonjee Hi-tech and Western Metal
Assuming the 90 days trading horizon Jonjee Hi tech Industrial is expected to generate 0.94 times more return on investment than Western Metal. However, Jonjee Hi tech Industrial is 1.06 times less risky than Western Metal. It trades about 0.1 of its potential returns per unit of risk. Western Metal Materials is currently generating about 0.02 per unit of risk. If you would invest 2,234 in Jonjee Hi tech Industrial on September 2, 2024 and sell it today you would earn a total of 119.00 from holding Jonjee Hi tech Industrial or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jonjee Hi tech Industrial vs. Western Metal Materials
Performance |
| Timeline |
| Jonjee Hi tech |
| Western Metal Materials |
Jonjee Hi-tech and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jonjee Hi-tech and Western Metal
The main advantage of trading using opposite Jonjee Hi-tech and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jonjee Hi-tech position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal's long position.| Jonjee Hi-tech vs. Nanjing Putian Telecommunications | Jonjee Hi-tech vs. Shenzhen Hifuture Electric | Jonjee Hi-tech vs. Tianjin Realty Development | Jonjee Hi-tech vs. Shenyang Huitian Thermal |
| Western Metal vs. Zijin Mining Group | Western Metal vs. Wanhua Chemical Group | Western Metal vs. Baoshan Iron Steel | Western Metal 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |