Correlation Between Bank of Communications and Jiangyin Jianghua
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By analyzing existing cross correlation between Bank of Communications and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Bank of Communications 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 Bank of Communications with a short position of Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Jiangyin Jianghua.
Diversification Opportunities for Bank of Communications and Jiangyin Jianghua
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Jiangyin is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua and Bank of Communications 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 Bank of Communications 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 Bank of Communications i.e., Bank of Communications and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Bank of Communications and Jiangyin Jianghua
Assuming the 90 days trading horizon Bank of Communications is expected to generate 60.23 times less return on investment than Jiangyin Jianghua. But when comparing it to its historical volatility, Bank of Communications is 4.28 times less risky than Jiangyin Jianghua. It trades about 0.02 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,539 in Jiangyin Jianghua Microelectronics on September 4, 2024 and sell it today you would earn a total of 404.00 from holding Jiangyin Jianghua Microelectronics or generate 26.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Bank of Communications |
| Jiangyin Jianghua |
Bank of Communications and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Jiangyin Jianghua
The main advantage of trading using opposite Bank of Communications and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications 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.| Bank of Communications vs. Ming Yang Smart | Bank of Communications vs. 159681 | Bank of Communications vs. 159005 | Bank of Communications vs. Loctek Ergonomic Technology |
| Jiangyin Jianghua vs. Cultural Investment Holdings | Jiangyin Jianghua vs. Gome Telecom Equipment | Jiangyin Jianghua vs. Bus Online Co | Jiangyin Jianghua vs. Holitech Technology Co |
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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