Correlation Between Niutech Environment and Jinsanjiang Silicon
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By analyzing existing cross correlation between Niutech Environment Technology and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Niutech Environment and Jinsanjiang Silicon 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 Niutech Environment with a short position of Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niutech Environment and Jinsanjiang Silicon.
Diversification Opportunities for Niutech Environment and Jinsanjiang Silicon
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Niutech and Jinsanjiang is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Niutech Environment Technology and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon and Niutech Environment 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 Niutech Environment Technology are associated (or correlated) with Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Niutech Environment i.e., Niutech Environment and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Niutech Environment and Jinsanjiang Silicon
Assuming the 90 days trading horizon Niutech Environment is expected to generate 1.17 times less return on investment than Jinsanjiang Silicon. But when comparing it to its historical volatility, Niutech Environment Technology is 1.24 times less risky than Jinsanjiang Silicon. It trades about 0.08 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 898.00 in Jinsanjiang Silicon Material on September 4, 2024 and sell it today you would earn a total of 265.00 from holding Jinsanjiang Silicon Material or generate 29.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Niutech Environment Technology vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Niutech Environment |
| Jinsanjiang Silicon |
Niutech Environment and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niutech Environment and Jinsanjiang Silicon
The main advantage of trading using opposite Niutech Environment and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niutech Environment position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.| Niutech Environment vs. Industrial and Commercial | Niutech Environment vs. Agricultural Bank of | Niutech Environment vs. China Construction Bank | Niutech Environment vs. Bank of China |
| Jinsanjiang Silicon vs. Dhc Software Co | Jinsanjiang Silicon vs. Niutech Environment Technology | Jinsanjiang Silicon vs. Gome Telecom Equipment | Jinsanjiang Silicon vs. Xinjiang Communications Construction |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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