Correlation Between Jonjee Hi and Huafa Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jonjee Hi tech Industrial and Huafa Industrial Co, you can compare the effects of market volatilities on Jonjee Hi and Huafa Industrial 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 Huafa Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jonjee Hi and Huafa Industrial.
Diversification Opportunities for Jonjee Hi and Huafa Industrial
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jonjee and Huafa is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jonjee Hi tech Industrial and Huafa Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huafa Industrial 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 Huafa Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huafa Industrial has no effect on the direction of Jonjee Hi i.e., Jonjee Hi and Huafa Industrial go up and down completely randomly.
Pair Corralation between Jonjee Hi and Huafa Industrial
Assuming the 90 days trading horizon Jonjee Hi tech Industrial is expected to under-perform the Huafa Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Jonjee Hi tech Industrial is 1.33 times less risky than Huafa Industrial. The stock trades about -0.13 of its potential returns per unit of risk. The Huafa Industrial Co is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 534.00 in Huafa Industrial Co on December 1, 2024 and sell it today you would earn a total of 31.00 from holding Huafa Industrial Co or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jonjee Hi tech Industrial vs. Huafa Industrial Co
Performance |
| Timeline |
| Jonjee Hi tech |
| Huafa Industrial |
Jonjee Hi and Huafa Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jonjee Hi and Huafa Industrial
The main advantage of trading using opposite Jonjee Hi and Huafa Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jonjee Hi position performs unexpectedly, Huafa Industrial 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 Huafa Industrial will offset losses from the drop in Huafa Industrial's long position.| Jonjee Hi vs. Ningbo MedicalSystem Biotechnology | Jonjee Hi vs. Fujian Wanchen Biotechnology | Jonjee Hi vs. Guangdong Marubi Biotechnology | Jonjee Hi vs. Hongrun Construction Group |
| Huafa Industrial vs. Jinling Hotel Corp | Huafa Industrial vs. Chongqing Sulian Plastic | Huafa Industrial vs. Shengda Mining Co | Huafa Industrial vs. Hengerda New Materials |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |