Correlation Between Jiangyin Jianghua and Northern United
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By analyzing existing cross correlation between Jiangyin Jianghua Microelectronics and Northern United Publishing, you can compare the effects of market volatilities on Jiangyin Jianghua and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangyin Jianghua and Northern United.
Diversification Opportunities for Jiangyin Jianghua and Northern United
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangyin and Northern is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jiangyin Jianghua Microelectro and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Jiangyin Jianghua i.e., Jiangyin Jianghua and Northern United go up and down completely randomly.
Pair Corralation between Jiangyin Jianghua and Northern United
Assuming the 90 days trading horizon Jiangyin Jianghua Microelectronics is expected to under-perform the Northern United. But the stock apears to be less risky and, when comparing its historical volatility, Jiangyin Jianghua Microelectronics is 1.1 times less risky than Northern United. The stock trades about -0.19 of its potential returns per unit of risk. The Northern United Publishing is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 670.00 in Northern United Publishing on October 28, 2024 and sell it today you would lose (25.00) from holding Northern United Publishing or give up 3.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangyin Jianghua Microelectro vs. Northern United Publishing
Performance |
| Timeline |
| Jiangyin Jianghua |
| Northern United Publ |
Jiangyin Jianghua and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangyin Jianghua and Northern United
The main advantage of trading using opposite Jiangyin Jianghua and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangyin Jianghua position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.| Jiangyin Jianghua vs. Cloud Live Technology | Jiangyin Jianghua vs. Nanjing Putian Telecommunications | Jiangyin Jianghua vs. Shenzhen Coship Electronics | Jiangyin Jianghua vs. Shenzhen Hifuture Electric |
| Northern United vs. Chengdu B ray Media | Northern United vs. Chinese Universe Publishing | Northern United vs. Jiangsu Phoenix Publishing | Northern United vs. COL Digital Publishing |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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