Correlation Between Jiangyin Jianghua and Jiangxi Lianchuang
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By analyzing existing cross correlation between Jiangyin Jianghua Microelectronics and Jiangxi Lianchuang Opto electronic, you can compare the effects of market volatilities on Jiangyin Jianghua and Jiangxi Lianchuang 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 Jiangxi Lianchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangyin Jianghua and Jiangxi Lianchuang.
Diversification Opportunities for Jiangyin Jianghua and Jiangxi Lianchuang
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangyin and Jiangxi is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jiangyin Jianghua Microelectro and Jiangxi Lianchuang Opto electr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Lianchuang Opto 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 Jiangxi Lianchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Lianchuang Opto has no effect on the direction of Jiangyin Jianghua i.e., Jiangyin Jianghua and Jiangxi Lianchuang go up and down completely randomly.
Pair Corralation between Jiangyin Jianghua and Jiangxi Lianchuang
Assuming the 90 days trading horizon Jiangyin Jianghua Microelectronics is expected to under-perform the Jiangxi Lianchuang. But the stock apears to be less risky and, when comparing its historical volatility, Jiangyin Jianghua Microelectronics is 1.09 times less risky than Jiangxi Lianchuang. The stock trades about -0.1 of its potential returns per unit of risk. The Jiangxi Lianchuang Opto electronic is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,445 in Jiangxi Lianchuang Opto electronic on October 19, 2024 and sell it today you would earn a total of 149.00 from holding Jiangxi Lianchuang Opto electronic or generate 3.35% 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. Jiangxi Lianchuang Opto electr
Performance |
| Timeline |
| Jiangyin Jianghua |
| Jiangxi Lianchuang Opto |
Jiangyin Jianghua and Jiangxi Lianchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangyin Jianghua and Jiangxi Lianchuang
The main advantage of trading using opposite Jiangyin Jianghua and Jiangxi Lianchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangyin Jianghua position performs unexpectedly, Jiangxi Lianchuang 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 Jiangxi Lianchuang will offset losses from the drop in Jiangxi Lianchuang'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 |
| Jiangxi Lianchuang vs. Haima Automobile Group | Jiangxi Lianchuang vs. Hangzhou Gisway Information | Jiangxi Lianchuang vs. Anhui Jianghuai Automobile | Jiangxi Lianchuang vs. Longmaster Information Tech |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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