Correlation Between Jonjee Hi-tech and Huaibei Mining
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By analyzing existing cross correlation between Jonjee Hi tech Industrial and Huaibei Mining Holdings, you can compare the effects of market volatilities on Jonjee Hi-tech and Huaibei Mining 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-tech with a short position of Huaibei Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jonjee Hi-tech and Huaibei Mining.
Diversification Opportunities for Jonjee Hi-tech and Huaibei Mining
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jonjee and Huaibei is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jonjee Hi tech Industrial and Huaibei Mining Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaibei Mining Holdings and Jonjee Hi-tech 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 Huaibei Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaibei Mining Holdings has no effect on the direction of Jonjee Hi-tech i.e., Jonjee Hi-tech and Huaibei Mining go up and down completely randomly.
Pair Corralation between Jonjee Hi-tech and Huaibei Mining
Assuming the 90 days trading horizon Jonjee Hi tech Industrial is expected to generate 1.17 times more return on investment than Huaibei Mining. However, Jonjee Hi-tech is 1.17 times more volatile than Huaibei Mining Holdings. It trades about -0.02 of its potential returns per unit of risk. Huaibei Mining Holdings is currently generating about -0.07 per unit of risk. If you would invest 2,621 in Jonjee Hi tech Industrial on August 31, 2024 and sell it today you would lose (268.00) from holding Jonjee Hi tech Industrial or give up 10.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jonjee Hi tech Industrial vs. Huaibei Mining Holdings
Performance |
| Timeline |
| Jonjee Hi tech |
| Huaibei Mining Holdings |
Jonjee Hi-tech and Huaibei Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jonjee Hi-tech and Huaibei Mining
The main advantage of trading using opposite Jonjee Hi-tech and Huaibei Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jonjee Hi-tech position performs unexpectedly, Huaibei Mining 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 Huaibei Mining will offset losses from the drop in Huaibei Mining's long position.| Jonjee Hi-tech vs. Lutian Machinery Co | Jonjee Hi-tech vs. PetroChina Co Ltd | Jonjee Hi-tech vs. Bank of China | Jonjee Hi-tech vs. Gansu Jiu Steel |
| Huaibei Mining vs. Chongqing Road Bridge | Huaibei Mining vs. Heilongjiang Transport Development | Huaibei Mining vs. Beijing Kaiwen Education | Huaibei Mining vs. Fujian Longzhou Transportation |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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