Correlation Between Jiangyin Jianghua and Shenzhen Hifuture
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By analyzing existing cross correlation between Jiangyin Jianghua Microelectronics and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Jiangyin Jianghua and Shenzhen Hifuture 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 Shenzhen Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangyin Jianghua and Shenzhen Hifuture.
Diversification Opportunities for Jiangyin Jianghua and Shenzhen Hifuture
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangyin and Shenzhen is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jiangyin Jianghua Microelectro and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture 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 Shenzhen Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of Jiangyin Jianghua i.e., Jiangyin Jianghua and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Jiangyin Jianghua and Shenzhen Hifuture
Assuming the 90 days trading horizon Jiangyin Jianghua Microelectronics is expected to generate 1.91 times more return on investment than Shenzhen Hifuture. However, Jiangyin Jianghua is 1.91 times more volatile than Shenzhen Hifuture Electric. It trades about 0.23 of its potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about 0.33 per unit of risk. If you would invest 1,539 in Jiangyin Jianghua Microelectronics on September 5, 2024 and sell it today you would earn a total of 418.00 from holding Jiangyin Jianghua Microelectronics or generate 27.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangyin Jianghua Microelectro vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| Jiangyin Jianghua |
| Shenzhen Hifuture |
Jiangyin Jianghua and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangyin Jianghua and Shenzhen Hifuture
The main advantage of trading using opposite Jiangyin Jianghua and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangyin Jianghua position performs unexpectedly, Shenzhen Hifuture 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 Shenzhen Hifuture will offset losses from the drop in Shenzhen Hifuture's long position.| Jiangyin Jianghua vs. Shandong Longquan Pipeline | Jiangyin Jianghua vs. Oppein Home Group | Jiangyin Jianghua vs. Nanxing Furniture Machinery | Jiangyin Jianghua vs. Xizi Clean Energy |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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