Correlation Between Piotech and Jiangyin Jianghua
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By analyzing existing cross correlation between Piotech Inc A and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Piotech and Jiangyin Jianghua 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 Piotech with a short position of Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Jiangyin Jianghua.
Diversification Opportunities for Piotech and Jiangyin Jianghua
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Piotech and Jiangyin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua and Piotech 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 Piotech Inc A are associated (or correlated) with Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of Piotech i.e., Piotech and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Piotech and Jiangyin Jianghua
Assuming the 90 days trading horizon Piotech Inc A is expected to generate 1.48 times more return on investment than Jiangyin Jianghua. However, Piotech is 1.48 times more volatile than Jiangyin Jianghua Microelectronics. It trades about 0.03 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about 0.03 per unit of risk. If you would invest 15,955 in Piotech Inc A on September 3, 2024 and sell it today you would earn a total of 3,976 from holding Piotech Inc A or generate 24.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piotech Inc A vs. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Piotech Inc A |
| Jiangyin Jianghua |
Piotech and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and Jiangyin Jianghua
The main advantage of trading using opposite Piotech and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua's long position.| Piotech vs. Westone Information Industry | Piotech vs. Shandong Mining Machinery | Piotech vs. Jiangxi Naipu Mining | Piotech vs. Air China Ltd |
| Jiangyin Jianghua vs. Agricultural Bank of | Jiangyin Jianghua vs. China Construction Bank | Jiangyin Jianghua vs. Postal Savings Bank | Jiangyin Jianghua vs. Bank of Communications |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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