Correlation Between Hefei Metalforming and Jinsanjiang Silicon
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By analyzing existing cross correlation between Hefei Metalforming Mach and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Hefei Metalforming and Jinsanjiang Silicon 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 Hefei Metalforming with a short position of Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Jinsanjiang Silicon.
Diversification Opportunities for Hefei Metalforming and Jinsanjiang Silicon
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hefei and Jinsanjiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon and Hefei Metalforming 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 Hefei Metalforming Mach are associated (or correlated) with Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Jinsanjiang Silicon
Assuming the 90 days trading horizon Hefei Metalforming is expected to generate 1.14 times less return on investment than Jinsanjiang Silicon. But when comparing it to its historical volatility, Hefei Metalforming Mach is 1.23 times less risky than Jinsanjiang Silicon. It trades about 0.09 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 882.00 in Jinsanjiang Silicon Material on September 3, 2024 and sell it today you would earn a total of 301.00 from holding Jinsanjiang Silicon Material or generate 34.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Jinsanjiang Silicon |
Hefei Metalforming and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Jinsanjiang Silicon
The main advantage of trading using opposite Hefei Metalforming and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.| Hefei Metalforming vs. Cultural Investment Holdings | Hefei Metalforming vs. Gome Telecom Equipment | Hefei Metalforming vs. Bus Online Co | Hefei Metalforming vs. Holitech Technology Co |
| Jinsanjiang Silicon vs. Zijin Mining Group | Jinsanjiang Silicon vs. Baoshan Iron Steel | Jinsanjiang Silicon vs. Hoshine Silicon Ind |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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