Correlation Between Eastern Communications and Jonjee Hi
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By analyzing existing cross correlation between Eastern Communications Co and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on Eastern Communications and Jonjee Hi 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 Eastern Communications with a short position of Jonjee Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Jonjee Hi.
Diversification Opportunities for Eastern Communications and Jonjee Hi
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastern and Jonjee is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co and Jonjee Hi tech Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jonjee Hi tech and Eastern Communications 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 Eastern Communications Co are associated (or correlated) with Jonjee Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jonjee Hi tech has no effect on the direction of Eastern Communications i.e., Eastern Communications and Jonjee Hi go up and down completely randomly.
Pair Corralation between Eastern Communications and Jonjee Hi
Assuming the 90 days trading horizon Eastern Communications Co is expected to generate 0.94 times more return on investment than Jonjee Hi. However, Eastern Communications Co is 1.06 times less risky than Jonjee Hi. It trades about 0.02 of its potential returns per unit of risk. Jonjee Hi tech Industrial is currently generating about -0.04 per unit of risk. If you would invest 41.00 in Eastern Communications Co on September 3, 2024 and sell it today you would earn a total of 2.00 from holding Eastern Communications Co or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Communications Co vs. Jonjee Hi tech Industrial
Performance |
| Timeline |
| Eastern Communications |
| Jonjee Hi tech |
Eastern Communications and Jonjee Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and Jonjee Hi
The main advantage of trading using opposite Eastern Communications and Jonjee Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications position performs unexpectedly, Jonjee Hi 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 Jonjee Hi will offset losses from the drop in Jonjee Hi's long position.| Eastern Communications vs. China Sports Industry | Eastern Communications vs. Linzhou Heavy Machinery | Eastern Communications vs. Anhui Huilong Agricultural | Eastern Communications vs. Lutian Machinery Co |
| Jonjee Hi vs. Beijing Wantai Biological | Jonjee Hi vs. Aluminum Corp of | Jonjee Hi vs. COL Digital Publishing | Jonjee Hi vs. Shaanxi Meineng Clean |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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