Correlation Between Jonjee Hi and Guangzhou Tinci
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By analyzing existing cross correlation between Jonjee Hi tech Industrial and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Jonjee Hi and Guangzhou Tinci 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 Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jonjee Hi and Guangzhou Tinci.
Diversification Opportunities for Jonjee Hi and Guangzhou Tinci
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jonjee and Guangzhou is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jonjee Hi tech Industrial and Guangzhou Tinci Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Tinci Materials 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 Guangzhou Tinci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Tinci Materials has no effect on the direction of Jonjee Hi i.e., Jonjee Hi and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Jonjee Hi and Guangzhou Tinci
Assuming the 90 days trading horizon Jonjee Hi is expected to generate 1.33 times less return on investment than Guangzhou Tinci. But when comparing it to its historical volatility, Jonjee Hi tech Industrial is 1.41 times less risky than Guangzhou Tinci. It trades about 0.12 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,324 in Guangzhou Tinci Materials on October 18, 2024 and sell it today you would earn a total of 507.00 from holding Guangzhou Tinci Materials or generate 38.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jonjee Hi tech Industrial vs. Guangzhou Tinci Materials
Performance |
| Timeline |
| Jonjee Hi tech |
| Guangzhou Tinci Materials |
Jonjee Hi and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jonjee Hi and Guangzhou Tinci
The main advantage of trading using opposite Jonjee Hi and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jonjee Hi position performs unexpectedly, Guangzhou Tinci 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 Guangzhou Tinci will offset losses from the drop in Guangzhou Tinci'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 |
| Guangzhou Tinci vs. Jonjee Hi tech Industrial | Guangzhou Tinci vs. Orinko Advanced Plastics | Guangzhou Tinci vs. China Minmetals Rare | Guangzhou Tinci vs. Shanghai Phichem Material |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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