Correlation Between Shaanxi Construction and Jiangyin Jianghua
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By analyzing existing cross correlation between Shaanxi Construction Machinery and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Shaanxi Construction and Jiangyin Jianghua 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 Shaanxi Construction with a short position of Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Construction and Jiangyin Jianghua.
Diversification Opportunities for Shaanxi Construction and Jiangyin Jianghua
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shaanxi and Jiangyin is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Construction Machinery and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua and Shaanxi Construction 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 Shaanxi Construction Machinery are associated (or correlated) with Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of Shaanxi Construction i.e., Shaanxi Construction and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Shaanxi Construction and Jiangyin Jianghua
Assuming the 90 days trading horizon Shaanxi Construction Machinery is expected to under-perform the Jiangyin Jianghua. In addition to that, Shaanxi Construction is 1.37 times more volatile than Jiangyin Jianghua Microelectronics. It trades about -0.17 of its total potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about -0.1 per unit of volatility. If you would invest 1,728 in Jiangyin Jianghua Microelectronics on October 19, 2024 and sell it today you would lose (118.00) from holding Jiangyin Jianghua Microelectronics or give up 6.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Construction Machinery vs. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Shaanxi Construction |
| Jiangyin Jianghua |
Shaanxi Construction and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Construction and Jiangyin Jianghua
The main advantage of trading using opposite Shaanxi Construction and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Construction position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua's long position.| Shaanxi Construction vs. Industrial and Commercial | Shaanxi Construction vs. Kweichow Moutai Co | Shaanxi Construction vs. Agricultural Bank of | Shaanxi Construction vs. PetroChina Co Ltd |
| Jiangyin Jianghua vs. Shaanxi Construction Machinery | Jiangyin Jianghua vs. Allied Machinery Co | Jiangyin Jianghua vs. Huasi Agricultural Development | Jiangyin Jianghua vs. Jiangsu Yanghe Brewery |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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