Correlation Between Jiangyin Jianghua and Hangzhou Weiguang
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By analyzing existing cross correlation between Jiangyin Jianghua Microelectronics and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on Jiangyin Jianghua and Hangzhou Weiguang 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 Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangyin Jianghua and Hangzhou Weiguang.
Diversification Opportunities for Jiangyin Jianghua and Hangzhou Weiguang
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangyin and Hangzhou is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jiangyin Jianghua Microelectro and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang 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 Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of Jiangyin Jianghua i.e., Jiangyin Jianghua and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between Jiangyin Jianghua and Hangzhou Weiguang
Assuming the 90 days trading horizon Jiangyin Jianghua Microelectronics is expected to generate 1.74 times more return on investment than Hangzhou Weiguang. However, Jiangyin Jianghua is 1.74 times more volatile than Hangzhou Weiguang Electronic. It trades about 0.26 of its potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about 0.1 per unit of risk. If you would invest 1,561 in Jiangyin Jianghua Microelectronics on August 29, 2024 and sell it today you would earn a total of 388.00 from holding Jiangyin Jianghua Microelectronics or generate 24.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangyin Jianghua Microelectro vs. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| Jiangyin Jianghua |
| Hangzhou Weiguang |
Jiangyin Jianghua and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangyin Jianghua and Hangzhou Weiguang
The main advantage of trading using opposite Jiangyin Jianghua and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangyin Jianghua position performs unexpectedly, Hangzhou Weiguang 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 Hangzhou Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.| Jiangyin Jianghua vs. Ningbo Tip Rubber | Jiangyin Jianghua vs. Zhongtong Guomai Communication | Jiangyin Jianghua vs. Xinke Material | Jiangyin Jianghua vs. Malion New Materials |
| Hangzhou Weiguang vs. Industrial and Commercial | Hangzhou Weiguang vs. China Construction Bank | Hangzhou Weiguang vs. Agricultural Bank of | Hangzhou Weiguang vs. Bank of China |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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