Correlation Between Changshu Tongrun and Jiangsu Jiejie
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By analyzing existing cross correlation between Changshu Tongrun Auto and Jiangsu Jiejie Microelectronics, you can compare the effects of market volatilities on Changshu Tongrun and Jiangsu Jiejie 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 Changshu Tongrun with a short position of Jiangsu Jiejie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changshu Tongrun and Jiangsu Jiejie.
Diversification Opportunities for Changshu Tongrun and Jiangsu Jiejie
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changshu and Jiangsu is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Changshu Tongrun Auto and Jiangsu Jiejie Microelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jiejie Micro and Changshu Tongrun 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 Changshu Tongrun Auto are associated (or correlated) with Jiangsu Jiejie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jiejie Micro has no effect on the direction of Changshu Tongrun i.e., Changshu Tongrun and Jiangsu Jiejie go up and down completely randomly.
Pair Corralation between Changshu Tongrun and Jiangsu Jiejie
Assuming the 90 days trading horizon Changshu Tongrun is expected to generate 1.27 times less return on investment than Jiangsu Jiejie. But when comparing it to its historical volatility, Changshu Tongrun Auto is 1.48 times less risky than Jiangsu Jiejie. It trades about 0.2 of its potential returns per unit of risk. Jiangsu Jiejie Microelectronics is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3,319 in Jiangsu Jiejie Microelectronics on November 28, 2024 and sell it today you would earn a total of 325.00 from holding Jiangsu Jiejie Microelectronics or generate 9.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changshu Tongrun Auto vs. Jiangsu Jiejie Microelectronic
Performance |
| Timeline |
| Changshu Tongrun Auto |
| Jiangsu Jiejie Micro |
Changshu Tongrun and Jiangsu Jiejie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changshu Tongrun and Jiangsu Jiejie
The main advantage of trading using opposite Changshu Tongrun and Jiangsu Jiejie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changshu Tongrun position performs unexpectedly, Jiangsu Jiejie 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 Jiangsu Jiejie will offset losses from the drop in Jiangsu Jiejie's long position.| Changshu Tongrun vs. Beijing Kingsoft Office | Changshu Tongrun vs. Baoding Dongli Machinery | Changshu Tongrun vs. Huasi Agricultural Development | Changshu Tongrun vs. Ningbo Homelink Eco iTech |
| Jiangsu Jiejie vs. Industrial and Commercial | Jiangsu Jiejie vs. Kweichow Moutai Co | Jiangsu Jiejie vs. Agricultural Bank of | Jiangsu Jiejie vs. China Mobile Limited |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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