Correlation Between Jiangyin Jianghua and Hefei Metalforming
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By analyzing existing cross correlation between Jiangyin Jianghua Microelectronics and Hefei Metalforming Mach, you can compare the effects of market volatilities on Jiangyin Jianghua and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangyin Jianghua and Hefei Metalforming.
Diversification Opportunities for Jiangyin Jianghua and Hefei Metalforming
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangyin and Hefei is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jiangyin Jianghua Microelectro and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Jiangyin Jianghua i.e., Jiangyin Jianghua and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Jiangyin Jianghua and Hefei Metalforming
Assuming the 90 days trading horizon Jiangyin Jianghua Microelectronics is expected to under-perform the Hefei Metalforming. But the stock apears to be less risky and, when comparing its historical volatility, Jiangyin Jianghua Microelectronics is 1.22 times less risky than Hefei Metalforming. The stock trades about -0.24 of its potential returns per unit of risk. The Hefei Metalforming Mach is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 780.00 in Hefei Metalforming Mach on October 16, 2024 and sell it today you would lose (104.00) from holding Hefei Metalforming Mach or give up 13.33% 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. Hefei Metalforming Mach
Performance |
| Timeline |
| Jiangyin Jianghua |
| Hefei Metalforming Mach |
Jiangyin Jianghua and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangyin Jianghua and Hefei Metalforming
The main advantage of trading using opposite Jiangyin Jianghua and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangyin Jianghua position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming's long position.| Jiangyin Jianghua vs. Anhui Jinhe Industrial | Jiangyin Jianghua vs. Lutian Machinery Co | Jiangyin Jianghua vs. Sichuan Yahua Industrial | Jiangyin Jianghua vs. Universal Scientific Industrial |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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