Correlation Between Jonjee Hi and Chahua Modern
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By analyzing existing cross correlation between Jonjee Hi tech Industrial and Chahua Modern Housewares, you can compare the effects of market volatilities on Jonjee Hi and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jonjee Hi and Chahua Modern.
Diversification Opportunities for Jonjee Hi and Chahua Modern
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jonjee and Chahua is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jonjee Hi tech Industrial and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Jonjee Hi i.e., Jonjee Hi and Chahua Modern go up and down completely randomly.
Pair Corralation between Jonjee Hi and Chahua Modern
Assuming the 90 days trading horizon Jonjee Hi tech Industrial is expected to under-perform the Chahua Modern. But the stock apears to be less risky and, when comparing its historical volatility, Jonjee Hi tech Industrial is 1.46 times less risky than Chahua Modern. The stock trades about -0.04 of its potential returns per unit of risk. The Chahua Modern Housewares is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 828.00 in Chahua Modern Housewares on September 4, 2024 and sell it today you would earn a total of 1,378 from holding Chahua Modern Housewares or generate 166.43% 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. Chahua Modern Housewares
Performance |
| Timeline |
| Jonjee Hi tech |
| Chahua Modern Housewares |
Jonjee Hi and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jonjee Hi and Chahua Modern
The main advantage of trading using opposite Jonjee Hi and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jonjee Hi position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Jonjee Hi vs. Poly Real Estate | Jonjee Hi vs. China Vanke Co | Jonjee Hi vs. China Merchants Shekou | Jonjee Hi vs. Huafa Industrial Co |
| Chahua Modern vs. Zhejiang Yayi Metal | Chahua Modern vs. Bomin Electronics Co | Chahua Modern vs. Nantong Haixing Electronics | Chahua Modern vs. Leyard Optoelectronic |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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