Correlation Between North Huajin and JiShi Media
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By analyzing existing cross correlation between North Huajin Chemical and JiShi Media Co, you can compare the effects of market volatilities on North Huajin and JiShi Media 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 North Huajin with a short position of JiShi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Huajin and JiShi Media.
Diversification Opportunities for North Huajin and JiShi Media
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between North and JiShi is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding North Huajin Chemical and JiShi Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JiShi Media and North Huajin 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 North Huajin Chemical are associated (or correlated) with JiShi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JiShi Media has no effect on the direction of North Huajin i.e., North Huajin and JiShi Media go up and down completely randomly.
Pair Corralation between North Huajin and JiShi Media
Assuming the 90 days trading horizon North Huajin Chemical is expected to under-perform the JiShi Media. But the stock apears to be less risky and, when comparing its historical volatility, North Huajin Chemical is 1.99 times less risky than JiShi Media. The stock trades about -0.04 of its potential returns per unit of risk. The JiShi Media Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 187.00 in JiShi Media Co on December 30, 2024 and sell it today you would earn a total of 3.00 from holding JiShi Media Co or generate 1.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
North Huajin Chemical vs. JiShi Media Co
Performance |
Timeline |
North Huajin Chemical |
JiShi Media |
North Huajin and JiShi Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with North Huajin and JiShi Media
The main advantage of trading using opposite North Huajin and JiShi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Huajin position performs unexpectedly, JiShi Media 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 JiShi Media will offset losses from the drop in JiShi Media's long position.North Huajin vs. Nanjing Putian Telecommunications | North Huajin vs. Hainan Mining Co | North Huajin vs. Shenzhen Silver Basis | North Huajin vs. Shenyang Blue Silver |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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