Correlation Between Industrial Securities and Jonjee Hi-tech
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By analyzing existing cross correlation between Industrial Securities Co and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on Industrial Securities and Jonjee Hi-tech 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 Industrial Securities with a short position of Jonjee Hi-tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Securities and Jonjee Hi-tech.
Diversification Opportunities for Industrial Securities and Jonjee Hi-tech
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Industrial and Jonjee is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Securities 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 Industrial Securities 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 Industrial Securities Co are associated (or correlated) with Jonjee Hi-tech. 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 Industrial Securities i.e., Industrial Securities and Jonjee Hi-tech go up and down completely randomly.
Pair Corralation between Industrial Securities and Jonjee Hi-tech
Assuming the 90 days trading horizon Industrial Securities Co is expected to generate 0.98 times more return on investment than Jonjee Hi-tech. However, Industrial Securities Co is 1.02 times less risky than Jonjee Hi-tech. It trades about -0.03 of its potential returns per unit of risk. Jonjee Hi tech Industrial is currently generating about -0.05 per unit of risk. If you would invest 647.00 in Industrial Securities Co on August 31, 2024 and sell it today you would lose (13.00) from holding Industrial Securities Co or give up 2.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Securities Co vs. Jonjee Hi tech Industrial
Performance |
| Timeline |
| Industrial Securities |
| Jonjee Hi tech |
Industrial Securities and Jonjee Hi-tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Securities and Jonjee Hi-tech
The main advantage of trading using opposite Industrial Securities and Jonjee Hi-tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Securities position performs unexpectedly, Jonjee Hi-tech 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-tech will offset losses from the drop in Jonjee Hi-tech's long position.| Industrial Securities vs. Agricultural Bank of | Industrial Securities vs. Hangzhou Pinming Software | Industrial Securities vs. Shandong Mining Machinery | Industrial Securities vs. GuoChuang Software Co |
| Jonjee Hi-tech vs. Lutian Machinery Co | Jonjee Hi-tech vs. PetroChina Co Ltd | Jonjee Hi-tech vs. Bank of China | Jonjee Hi-tech vs. Gansu Jiu Steel |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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