Correlation Between Jonjee Hi and China Merchants
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By analyzing existing cross correlation between Jonjee Hi tech Industrial and China Merchants Bank, you can compare the effects of market volatilities on Jonjee Hi and China Merchants 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 China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jonjee Hi and China Merchants.
Diversification Opportunities for Jonjee Hi and China Merchants
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jonjee and China is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jonjee Hi tech Industrial and China Merchants Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Bank 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 China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Bank has no effect on the direction of Jonjee Hi i.e., Jonjee Hi and China Merchants go up and down completely randomly.
Pair Corralation between Jonjee Hi and China Merchants
Assuming the 90 days trading horizon Jonjee Hi tech Industrial is expected to under-perform the China Merchants. In addition to that, Jonjee Hi is 1.71 times more volatile than China Merchants Bank. It trades about -0.02 of its total potential returns per unit of risk. China Merchants Bank is currently generating about 0.08 per unit of volatility. If you would invest 2,750 in China Merchants Bank on September 3, 2024 and sell it today you would earn a total of 884.00 from holding China Merchants Bank or generate 32.15% 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. China Merchants Bank
Performance |
| Timeline |
| Jonjee Hi tech |
| China Merchants Bank |
Jonjee Hi and China Merchants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jonjee Hi and China Merchants
The main advantage of trading using opposite Jonjee Hi and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jonjee Hi position performs unexpectedly, China Merchants 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 China Merchants will offset losses from the drop in China Merchants' 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 |
| China Merchants vs. Hainan Mining Co | China Merchants vs. Shengda Mining Co | China Merchants vs. Jonjee Hi tech Industrial | China Merchants vs. Tianjin Hi Tech Development |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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