Correlation Between Kunshan Guoli and Jiangyin Jianghua
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By analyzing existing cross correlation between Kunshan Guoli Electronic and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Kunshan Guoli 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 Kunshan Guoli with a short position of Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Jiangyin Jianghua.
Diversification Opportunities for Kunshan Guoli and Jiangyin Jianghua
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kunshan and Jiangyin is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua and Kunshan Guoli 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 Kunshan Guoli Electronic 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 Kunshan Guoli i.e., Kunshan Guoli and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Jiangyin Jianghua
Assuming the 90 days trading horizon Kunshan Guoli Electronic is expected to under-perform the Jiangyin Jianghua. But the stock apears to be less risky and, when comparing its historical volatility, Kunshan Guoli Electronic is 1.6 times less risky than Jiangyin Jianghua. The stock trades about -0.09 of its potential returns per unit of risk. The Jiangyin Jianghua Microelectronics is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,705 in Jiangyin Jianghua Microelectronics on September 13, 2024 and sell it today you would earn a total of 185.00 from holding Jiangyin Jianghua Microelectronics or generate 10.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunshan Guoli Electronic vs. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| Jiangyin Jianghua |
Kunshan Guoli and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and Jiangyin Jianghua
The main advantage of trading using opposite Kunshan Guoli and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli 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.| Kunshan Guoli vs. Industrial and Commercial | Kunshan Guoli vs. Agricultural Bank of | Kunshan Guoli vs. China Construction Bank | Kunshan Guoli vs. Bank of China |
| Jiangyin Jianghua vs. Nanjing Putian Telecommunications | Jiangyin Jianghua vs. Tianjin Realty Development | Jiangyin Jianghua vs. Kangyue Technology Co | Jiangyin Jianghua vs. Shenzhen Hifuture Electric |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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