Correlation Between Jonjee Hi and Shanghai Ziyan
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By analyzing existing cross correlation between Jonjee Hi tech Industrial and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Jonjee Hi and Shanghai Ziyan 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 Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jonjee Hi and Shanghai Ziyan.
Diversification Opportunities for Jonjee Hi and Shanghai Ziyan
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jonjee and Shanghai is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jonjee Hi tech Industrial and Shanghai Ziyan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Ziyan Foods 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 Shanghai Ziyan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Ziyan Foods has no effect on the direction of Jonjee Hi i.e., Jonjee Hi and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Jonjee Hi and Shanghai Ziyan
Assuming the 90 days trading horizon Jonjee Hi is expected to generate 2.17 times less return on investment than Shanghai Ziyan. But when comparing it to its historical volatility, Jonjee Hi tech Industrial is 1.14 times less risky than Shanghai Ziyan. It trades about 0.1 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,746 in Shanghai Ziyan Foods on September 13, 2024 and sell it today you would earn a total of 220.00 from holding Shanghai Ziyan Foods or generate 12.6% 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. Shanghai Ziyan Foods
Performance |
| Timeline |
| Jonjee Hi tech |
| Shanghai Ziyan Foods |
Jonjee Hi and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jonjee Hi and Shanghai Ziyan
The main advantage of trading using opposite Jonjee Hi and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jonjee Hi position performs unexpectedly, Shanghai Ziyan 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 Shanghai Ziyan will offset losses from the drop in Shanghai Ziyan's long position.| Jonjee Hi vs. HUAQIN TECHNOLOGY LTD | Jonjee Hi vs. Jinhe Biotechnology Co | Jonjee Hi vs. Linewell Software Co | Jonjee Hi vs. Yuan Longping High tech |
| Shanghai Ziyan vs. Kweichow Moutai Co | Shanghai Ziyan vs. Shenzhen Mindray Bio Medical | Shanghai Ziyan vs. Jiangsu Pacific Quartz | Shanghai Ziyan vs. G bits Network Technology |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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