Correlation Between Guangdong Cellwise and Changsha Jingjia
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By analyzing existing cross correlation between Guangdong Cellwise Microelectronics and Changsha Jingjia Microelectronics, you can compare the effects of market volatilities on Guangdong Cellwise and Changsha Jingjia 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 Guangdong Cellwise with a short position of Changsha Jingjia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Cellwise and Changsha Jingjia.
Diversification Opportunities for Guangdong Cellwise and Changsha Jingjia
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Changsha is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Cellwise Microelectr and Changsha Jingjia Microelectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changsha Jingjia Mic and Guangdong Cellwise 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 Guangdong Cellwise Microelectronics are associated (or correlated) with Changsha Jingjia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changsha Jingjia Mic has no effect on the direction of Guangdong Cellwise i.e., Guangdong Cellwise and Changsha Jingjia go up and down completely randomly.
Pair Corralation between Guangdong Cellwise and Changsha Jingjia
Assuming the 90 days trading horizon Guangdong Cellwise is expected to generate 2.34 times less return on investment than Changsha Jingjia. But when comparing it to its historical volatility, Guangdong Cellwise Microelectronics is 1.6 times less risky than Changsha Jingjia. It trades about 0.18 of its potential returns per unit of risk. Changsha Jingjia Microelectronics is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 8,122 in Changsha Jingjia Microelectronics on September 27, 2024 and sell it today you would earn a total of 2,278 from holding Changsha Jingjia Microelectronics or generate 28.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guangdong Cellwise Microelectr vs. Changsha Jingjia Microelectron
Performance |
| Timeline |
| Guangdong Cellwise |
| Changsha Jingjia Mic |
Guangdong Cellwise and Changsha Jingjia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Cellwise and Changsha Jingjia
The main advantage of trading using opposite Guangdong Cellwise and Changsha Jingjia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Cellwise position performs unexpectedly, Changsha Jingjia 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 Changsha Jingjia will offset losses from the drop in Changsha Jingjia's long position.| Guangdong Cellwise vs. Ming Yang Smart | Guangdong Cellwise vs. 159681 | Guangdong Cellwise vs. 159005 | Guangdong Cellwise vs. Loctek Ergonomic Technology |
| Changsha Jingjia vs. Ming Yang Smart | Changsha Jingjia vs. 159681 | Changsha Jingjia vs. 159005 | Changsha Jingjia vs. Loctek Ergonomic Technology |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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