Correlation Between Jiangyin Jianghua and CSSC Offshore
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By analyzing existing cross correlation between Jiangyin Jianghua Microelectronics and CSSC Offshore Marine, you can compare the effects of market volatilities on Jiangyin Jianghua and CSSC Offshore 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 CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangyin Jianghua and CSSC Offshore.
Diversification Opportunities for Jiangyin Jianghua and CSSC Offshore
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangyin and CSSC is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jiangyin Jianghua Microelectro and CSSC Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSSC Offshore Marine 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 CSSC Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSSC Offshore Marine has no effect on the direction of Jiangyin Jianghua i.e., Jiangyin Jianghua and CSSC Offshore go up and down completely randomly.
Pair Corralation between Jiangyin Jianghua and CSSC Offshore
Assuming the 90 days trading horizon Jiangyin Jianghua Microelectronics is expected to generate 2.18 times more return on investment than CSSC Offshore. However, Jiangyin Jianghua is 2.18 times more volatile than CSSC Offshore Marine. It trades about 0.26 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.18 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangyin Jianghua Microelectro vs. CSSC Offshore Marine
Performance |
| Timeline |
| Jiangyin Jianghua |
| CSSC Offshore Marine |
Jiangyin Jianghua and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangyin Jianghua and CSSC Offshore
The main advantage of trading using opposite Jiangyin Jianghua and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangyin Jianghua position performs unexpectedly, CSSC Offshore 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 CSSC Offshore will offset losses from the drop in CSSC Offshore'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 |
| CSSC Offshore vs. Biwin Storage Technology | CSSC Offshore vs. PetroChina Co Ltd | CSSC Offshore vs. Industrial and Commercial | CSSC Offshore vs. China Construction Bank |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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