Correlation Between Jiangyin Jianghua and Zhongshan Broad
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By analyzing existing cross correlation between Jiangyin Jianghua Microelectronics and Zhongshan Broad Ocean Motor, you can compare the effects of market volatilities on Jiangyin Jianghua and Zhongshan Broad 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 Zhongshan Broad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangyin Jianghua and Zhongshan Broad.
Diversification Opportunities for Jiangyin Jianghua and Zhongshan Broad
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangyin and Zhongshan is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jiangyin Jianghua Microelectro and Zhongshan Broad Ocean Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Broad Ocean 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 Zhongshan Broad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Broad Ocean has no effect on the direction of Jiangyin Jianghua i.e., Jiangyin Jianghua and Zhongshan Broad go up and down completely randomly.
Pair Corralation between Jiangyin Jianghua and Zhongshan Broad
Assuming the 90 days trading horizon Jiangyin Jianghua Microelectronics is expected to under-perform the Zhongshan Broad. But the stock apears to be less risky and, when comparing its historical volatility, Jiangyin Jianghua Microelectronics is 1.13 times less risky than Zhongshan Broad. The stock trades about -0.1 of its potential returns per unit of risk. The Zhongshan Broad Ocean Motor is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 557.00 in Zhongshan Broad Ocean Motor on October 19, 2024 and sell it today you would earn a total of 11.00 from holding Zhongshan Broad Ocean Motor or generate 1.97% 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. Zhongshan Broad Ocean Motor
Performance |
| Timeline |
| Jiangyin Jianghua |
| Zhongshan Broad Ocean |
Jiangyin Jianghua and Zhongshan Broad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangyin Jianghua and Zhongshan Broad
The main advantage of trading using opposite Jiangyin Jianghua and Zhongshan Broad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangyin Jianghua position performs unexpectedly, Zhongshan Broad 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 Zhongshan Broad will offset losses from the drop in Zhongshan Broad's long position.| Jiangyin Jianghua vs. Shaanxi Construction Machinery | Jiangyin Jianghua vs. Allied Machinery Co | Jiangyin Jianghua vs. Huasi Agricultural Development | Jiangyin Jianghua vs. Jiangsu Yanghe Brewery |
| Zhongshan Broad vs. Shengda Mining Co | Zhongshan Broad vs. Threes Company Media | Zhongshan Broad vs. JiShi Media Co | Zhongshan Broad vs. Mango Excellent Media |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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