Correlation Between Jiangyin Jianghua and Techshine Electronics
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By analyzing existing cross correlation between Jiangyin Jianghua Microelectronics and Techshine Electronics Co, you can compare the effects of market volatilities on Jiangyin Jianghua and Techshine Electronics 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 Techshine Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangyin Jianghua and Techshine Electronics.
Diversification Opportunities for Jiangyin Jianghua and Techshine Electronics
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangyin and Techshine is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jiangyin Jianghua Microelectro and Techshine Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techshine Electronics 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 Techshine Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techshine Electronics has no effect on the direction of Jiangyin Jianghua i.e., Jiangyin Jianghua and Techshine Electronics go up and down completely randomly.
Pair Corralation between Jiangyin Jianghua and Techshine Electronics
Assuming the 90 days trading horizon Jiangyin Jianghua Microelectronics is expected to generate 2.0 times more return on investment than Techshine Electronics. However, Jiangyin Jianghua is 2.0 times more volatile than Techshine Electronics Co. It trades about 0.26 of its potential returns per unit of risk. Techshine Electronics Co is currently generating about -0.04 per unit of risk. If you would invest 1,570 in Jiangyin Jianghua Microelectronics on September 1, 2024 and sell it today you would earn a total of 486.00 from holding Jiangyin Jianghua Microelectronics or generate 30.96% 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. Techshine Electronics Co
Performance |
| Timeline |
| Jiangyin Jianghua |
| Techshine Electronics |
Jiangyin Jianghua and Techshine Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangyin Jianghua and Techshine Electronics
The main advantage of trading using opposite Jiangyin Jianghua and Techshine Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangyin Jianghua position performs unexpectedly, Techshine Electronics 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 Techshine Electronics will offset losses from the drop in Techshine Electronics' long position.| Jiangyin Jianghua vs. Zhejiang Kingland Pipeline | Jiangyin Jianghua vs. Anhui Deli Household | Jiangyin Jianghua vs. Chahua Modern Housewares | Jiangyin Jianghua vs. Shandong Mining Machinery |
| Techshine Electronics vs. Cultural Investment Holdings | Techshine Electronics vs. Gome Telecom Equipment | Techshine Electronics vs. Bus Online Co | Techshine Electronics vs. Zotye Automobile 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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