Correlation Between Jiangyin Jianghua and Unigroup Guoxin
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By analyzing existing cross correlation between Jiangyin Jianghua Microelectronics and Unigroup Guoxin Microelectronics, you can compare the effects of market volatilities on Jiangyin Jianghua and Unigroup Guoxin 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 Jiangyin Jianghua with a short position of Unigroup Guoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangyin Jianghua and Unigroup Guoxin.
Diversification Opportunities for Jiangyin Jianghua and Unigroup Guoxin
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangyin and Unigroup is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jiangyin Jianghua Microelectro and Unigroup Guoxin Microelectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unigroup Guoxin Micr and Jiangyin Jianghua 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 Jiangyin Jianghua Microelectronics are associated (or correlated) with Unigroup Guoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unigroup Guoxin Micr has no effect on the direction of Jiangyin Jianghua i.e., Jiangyin Jianghua and Unigroup Guoxin go up and down completely randomly.
Pair Corralation between Jiangyin Jianghua and Unigroup Guoxin
Assuming the 90 days trading horizon Jiangyin Jianghua Microelectronics is expected to generate 1.14 times more return on investment than Unigroup Guoxin. However, Jiangyin Jianghua is 1.14 times more volatile than Unigroup Guoxin Microelectronics. It trades about 0.18 of its potential returns per unit of risk. Unigroup Guoxin Microelectronics is currently generating about 0.18 per unit of risk. If you would invest 1,161 in Jiangyin Jianghua Microelectronics on September 20, 2024 and sell it today you would earn a total of 567.00 from holding Jiangyin Jianghua Microelectronics or generate 48.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangyin Jianghua Microelectro vs. Unigroup Guoxin Microelectroni
Performance |
| Timeline |
| Jiangyin Jianghua |
| Unigroup Guoxin Micr |
Jiangyin Jianghua and Unigroup Guoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangyin Jianghua and Unigroup Guoxin
The main advantage of trading using opposite Jiangyin Jianghua and Unigroup Guoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangyin Jianghua position performs unexpectedly, Unigroup Guoxin 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 Unigroup Guoxin will offset losses from the drop in Unigroup Guoxin's long position.| Jiangyin Jianghua vs. Nanjing Putian Telecommunications | Jiangyin Jianghua vs. Tianjin Realty Development | Jiangyin Jianghua vs. Kangyue Technology Co | Jiangyin Jianghua vs. Shenzhen Hifuture Electric |
| Unigroup Guoxin vs. Sihui Fuji Electronics | Unigroup Guoxin vs. Great Sun Foods Co | Unigroup Guoxin vs. Suzhou Douson Drilling | Unigroup Guoxin vs. Anji Foodstuff 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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