Correlation Between Dongxing Sec and Jonjee Hi
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By analyzing existing cross correlation between Dongxing Sec Co and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on Dongxing Sec and Jonjee Hi 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 Dongxing Sec with a short position of Jonjee Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Jonjee Hi.
Diversification Opportunities for Dongxing Sec and Jonjee Hi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongxing and Jonjee is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Jonjee Hi tech Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jonjee Hi tech and Dongxing Sec 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 Dongxing Sec Co are associated (or correlated) with Jonjee Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jonjee Hi tech has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Jonjee Hi go up and down completely randomly.
Pair Corralation between Dongxing Sec and Jonjee Hi
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 1.81 times more return on investment than Jonjee Hi. However, Dongxing Sec is 1.81 times more volatile than Jonjee Hi tech Industrial. It trades about 0.09 of its potential returns per unit of risk. Jonjee Hi tech Industrial is currently generating about -0.19 per unit of risk. If you would invest 1,035 in Dongxing Sec Co on August 26, 2024 and sell it today you would earn a total of 73.00 from holding Dongxing Sec Co or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Jonjee Hi tech Industrial
Performance |
| Timeline |
| Dongxing Sec |
| Jonjee Hi tech |
Dongxing Sec and Jonjee Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Jonjee Hi
The main advantage of trading using opposite Dongxing Sec and Jonjee Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Jonjee Hi 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 Jonjee Hi will offset losses from the drop in Jonjee Hi's long position.| Dongxing Sec vs. Jonjee Hi tech Industrial | Dongxing Sec vs. Northking Information Technology | Dongxing Sec vs. CITIC Guoan Information | Dongxing Sec vs. Sunwave Communications Co |
| Jonjee Hi vs. China Petroleum Chemical | Jonjee Hi vs. PetroChina Co Ltd | Jonjee Hi vs. China State Construction | Jonjee Hi vs. China Railway Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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