Correlation Between Jiangyin Jianghua and Sichuan Newsnet
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By analyzing existing cross correlation between Jiangyin Jianghua Microelectronics and Sichuan Newsnet Media, you can compare the effects of market volatilities on Jiangyin Jianghua and Sichuan Newsnet 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 Sichuan Newsnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangyin Jianghua and Sichuan Newsnet.
Diversification Opportunities for Jiangyin Jianghua and Sichuan Newsnet
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangyin and Sichuan is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Jiangyin Jianghua Microelectro and Sichuan Newsnet Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Newsnet Media 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 Sichuan Newsnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Newsnet Media has no effect on the direction of Jiangyin Jianghua i.e., Jiangyin Jianghua and Sichuan Newsnet go up and down completely randomly.
Pair Corralation between Jiangyin Jianghua and Sichuan Newsnet
Assuming the 90 days trading horizon Jiangyin Jianghua Microelectronics is expected to generate 0.91 times more return on investment than Sichuan Newsnet. However, Jiangyin Jianghua Microelectronics is 1.1 times less risky than Sichuan Newsnet. It trades about -0.1 of its potential returns per unit of risk. Sichuan Newsnet Media is currently generating about -0.23 per unit of risk. If you would invest 1,728 in Jiangyin Jianghua Microelectronics on October 19, 2024 and sell it today you would lose (118.00) from holding Jiangyin Jianghua Microelectronics or give up 6.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangyin Jianghua Microelectro vs. Sichuan Newsnet Media
Performance |
| Timeline |
| Jiangyin Jianghua |
| Sichuan Newsnet Media |
Jiangyin Jianghua and Sichuan Newsnet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangyin Jianghua and Sichuan Newsnet
The main advantage of trading using opposite Jiangyin Jianghua and Sichuan Newsnet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangyin Jianghua position performs unexpectedly, Sichuan Newsnet 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 Sichuan Newsnet will offset losses from the drop in Sichuan Newsnet'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 |
| Sichuan Newsnet vs. Jiangxi Lianchuang Opto electronic | Sichuan Newsnet vs. Dongguan Tarry Electronics | Sichuan Newsnet vs. Chengdu Xinzhu RoadBridge | Sichuan Newsnet vs. Jiangyin Jianghua Microelectronics |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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