Correlation Between Jonjee Hi and HeBei Jinniu
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By analyzing existing cross correlation between Jonjee Hi tech Industrial and HeBei Jinniu Chemical, you can compare the effects of market volatilities on Jonjee Hi and HeBei Jinniu 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 HeBei Jinniu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jonjee Hi and HeBei Jinniu.
Diversification Opportunities for Jonjee Hi and HeBei Jinniu
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jonjee and HeBei is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jonjee Hi tech Industrial and HeBei Jinniu Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeBei Jinniu Chemical 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 HeBei Jinniu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeBei Jinniu Chemical has no effect on the direction of Jonjee Hi i.e., Jonjee Hi and HeBei Jinniu go up and down completely randomly.
Pair Corralation between Jonjee Hi and HeBei Jinniu
Assuming the 90 days trading horizon Jonjee Hi tech Industrial is expected to generate 1.15 times more return on investment than HeBei Jinniu. However, Jonjee Hi is 1.15 times more volatile than HeBei Jinniu Chemical. It trades about 0.18 of its potential returns per unit of risk. HeBei Jinniu Chemical is currently generating about 0.19 per unit of risk. If you would invest 1,714 in Jonjee Hi tech Industrial on September 3, 2024 and sell it today you would earn a total of 639.00 from holding Jonjee Hi tech Industrial or generate 37.28% 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. HeBei Jinniu Chemical
Performance |
| Timeline |
| Jonjee Hi tech |
| HeBei Jinniu Chemical |
Jonjee Hi and HeBei Jinniu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jonjee Hi and HeBei Jinniu
The main advantage of trading using opposite Jonjee Hi and HeBei Jinniu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jonjee Hi position performs unexpectedly, HeBei Jinniu 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 HeBei Jinniu will offset losses from the drop in HeBei Jinniu'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 |
| HeBei Jinniu vs. Central Plains Environment | HeBei Jinniu vs. Shenzhen MYS Environmental | HeBei Jinniu vs. Lotus Health Group | HeBei Jinniu vs. Tianjin Capital Environmental |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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