Correlation Between Jangho Group and Jiangxi Hengda
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By analyzing existing cross correlation between Jangho Group Co and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Jangho Group and Jiangxi Hengda 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 Jangho Group with a short position of Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jangho Group and Jiangxi Hengda.
Diversification Opportunities for Jangho Group and Jiangxi Hengda
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jangho and Jiangxi is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jangho Group Co and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi and Jangho Group 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 Jangho Group Co are associated (or correlated) with Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Jangho Group i.e., Jangho Group and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Jangho Group and Jiangxi Hengda
Assuming the 90 days trading horizon Jangho Group Co is expected to under-perform the Jiangxi Hengda. But the stock apears to be less risky and, when comparing its historical volatility, Jangho Group Co is 1.63 times less risky than Jiangxi Hengda. The stock trades about -0.03 of its potential returns per unit of risk. The Jiangxi Hengda Hi Tech is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 644.00 in Jiangxi Hengda Hi Tech on September 4, 2024 and sell it today you would lose (51.00) from holding Jiangxi Hengda Hi Tech or give up 7.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jangho Group Co vs. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Jangho Group |
| Jiangxi Hengda Hi |
Jangho Group and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jangho Group and Jiangxi Hengda
The main advantage of trading using opposite Jangho Group and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jangho Group position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.| Jangho Group vs. Jinhui Liquor Co | Jangho Group vs. Inspur Software Co | Jangho Group vs. Qingdao Citymedia Co | Jangho Group vs. Beijing Bashi Media |
| Jiangxi Hengda vs. Dalian Zeus Entertainment | Jiangxi Hengda vs. Kingclean Electric Co | Jiangxi Hengda vs. Ningxia Younglight Chemicals | Jiangxi Hengda vs. Miracll Chemicals 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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