Correlation Between Shanghai Jin and SI TECH
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By analyzing existing cross correlation between Shanghai Jin Jiang and SI TECH Information Technology, you can compare the effects of market volatilities on Shanghai Jin and SI TECH 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 Shanghai Jin with a short position of SI TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jin and SI TECH.
Diversification Opportunities for Shanghai Jin and SI TECH
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and 300608 is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jin Jiang and SI TECH Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SI TECH Information and Shanghai Jin 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 Shanghai Jin Jiang are associated (or correlated) with SI TECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SI TECH Information has no effect on the direction of Shanghai Jin i.e., Shanghai Jin and SI TECH go up and down completely randomly.
Pair Corralation between Shanghai Jin and SI TECH
Assuming the 90 days trading horizon Shanghai Jin Jiang is expected to under-perform the SI TECH. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Jin Jiang is 2.69 times less risky than SI TECH. The stock trades about -0.03 of its potential returns per unit of risk. The SI TECH Information Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 861.00 in SI TECH Information Technology on September 28, 2024 and sell it today you would earn a total of 255.00 from holding SI TECH Information Technology or generate 29.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Jin Jiang vs. SI TECH Information Technology
Performance |
| Timeline |
| Shanghai Jin Jiang |
| SI TECH Information |
Shanghai Jin and SI TECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jin and SI TECH
The main advantage of trading using opposite Shanghai Jin and SI TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jin position performs unexpectedly, SI TECH 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 SI TECH will offset losses from the drop in SI TECH's long position.| Shanghai Jin vs. Bank of China | Shanghai Jin vs. Kweichow Moutai Co | Shanghai Jin vs. PetroChina Co Ltd | Shanghai Jin vs. Bank of Communications |
| SI TECH vs. Kweichow Moutai Co | SI TECH vs. Shenzhen Mindray Bio Medical | SI TECH vs. Jiangsu Pacific Quartz | SI TECH vs. G bits Network 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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