Correlation Between Jonjee Hi and Jiangxi Hengda
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By analyzing existing cross correlation between Jonjee Hi tech Industrial and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Jonjee Hi and Jiangxi Hengda 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 Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jonjee Hi and Jiangxi Hengda.
Diversification Opportunities for Jonjee Hi and Jiangxi Hengda
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jonjee and Jiangxi is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jonjee Hi tech Industrial and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi 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 Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Jonjee Hi i.e., Jonjee Hi and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Jonjee Hi and Jiangxi Hengda
Assuming the 90 days trading horizon Jonjee Hi is expected to generate 4.36 times less return on investment than Jiangxi Hengda. In addition to that, Jonjee Hi is 1.03 times more volatile than Jiangxi Hengda Hi Tech. It trades about 0.05 of its total potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about 0.21 per unit of volatility. If you would invest 516.00 in Jiangxi Hengda Hi Tech on September 3, 2024 and sell it today you would earn a total of 63.00 from holding Jiangxi Hengda Hi Tech or generate 12.21% 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. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Jonjee Hi tech |
| Jiangxi Hengda Hi |
Jonjee Hi and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jonjee Hi and Jiangxi Hengda
The main advantage of trading using opposite Jonjee Hi and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jonjee Hi position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.| Jonjee Hi vs. Beijing Wantai Biological | Jonjee Hi vs. Aluminum Corp of | Jonjee Hi vs. COL Digital Publishing | Jonjee Hi vs. Shaanxi Meineng Clean |
| Jiangxi Hengda vs. Anhui Jianghuai Automobile | Jiangxi Hengda vs. Iat Automobile Technology | Jiangxi Hengda vs. Hubei Dinglong Chemical | Jiangxi Hengda vs. Maoming Petro Chemical Shihua |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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