Correlation Between Jonjee Hi and Sichuan Jinshi
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By analyzing existing cross correlation between Jonjee Hi tech Industrial and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Jonjee Hi and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jonjee Hi and Sichuan Jinshi.
Diversification Opportunities for Jonjee Hi and Sichuan Jinshi
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jonjee and Sichuan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jonjee Hi tech Industrial and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Jonjee Hi i.e., Jonjee Hi and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Jonjee Hi and Sichuan Jinshi
Assuming the 90 days trading horizon Jonjee Hi tech Industrial is expected to under-perform the Sichuan Jinshi. But the stock apears to be less risky and, when comparing its historical volatility, Jonjee Hi tech Industrial is 1.02 times less risky than Sichuan Jinshi. The stock trades about -0.03 of its potential returns per unit of risk. The Sichuan Jinshi Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 570.00 in Sichuan Jinshi Technology on September 3, 2024 and sell it today you would earn a total of 143.00 from holding Sichuan Jinshi Technology or generate 25.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jonjee Hi tech Industrial vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Jonjee Hi tech |
| Sichuan Jinshi Technology |
Jonjee Hi and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jonjee Hi and Sichuan Jinshi
The main advantage of trading using opposite Jonjee Hi and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jonjee Hi position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi'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 |
| Sichuan Jinshi vs. Zijin Mining Group | Sichuan Jinshi vs. Baoshan Iron Steel | Sichuan Jinshi vs. Rongsheng Petrochemical Co | Sichuan Jinshi vs. Hoshine Silicon Ind |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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