Correlation Between Henan Shenhuo and Jiangyin Jianghua
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By analyzing existing cross correlation between Henan Shenhuo Coal and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Henan Shenhuo and Jiangyin Jianghua 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 Henan Shenhuo with a short position of Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shenhuo and Jiangyin Jianghua.
Diversification Opportunities for Henan Shenhuo and Jiangyin Jianghua
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Henan and Jiangyin is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shenhuo Coal and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua and Henan Shenhuo 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 Henan Shenhuo Coal are associated (or correlated) with Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of Henan Shenhuo i.e., Henan Shenhuo and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Henan Shenhuo and Jiangyin Jianghua
Assuming the 90 days trading horizon Henan Shenhuo Coal is expected to generate 0.89 times more return on investment than Jiangyin Jianghua. However, Henan Shenhuo Coal is 1.12 times less risky than Jiangyin Jianghua. It trades about 0.03 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about 0.02 per unit of risk. If you would invest 1,347 in Henan Shenhuo Coal on September 20, 2024 and sell it today you would earn a total of 359.00 from holding Henan Shenhuo Coal or generate 26.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.79% |
Values | Daily Returns |
Henan Shenhuo Coal vs. Jiangyin Jianghua Microelectro
Performance |
Timeline |
Henan Shenhuo Coal |
Jiangyin Jianghua |
Henan Shenhuo and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Henan Shenhuo and Jiangyin Jianghua
The main advantage of trading using opposite Henan Shenhuo and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shenhuo position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua's long position.Henan Shenhuo vs. Grandblue Environment Co | Henan Shenhuo vs. Shenzhen MYS Environmental | Henan Shenhuo vs. Qiaoyin Environmental Tech | Henan Shenhuo vs. Sinocat Environmental Technology |
Jiangyin Jianghua vs. Nanjing Putian Telecommunications | Jiangyin Jianghua vs. Tianjin Realty Development | Jiangyin Jianghua vs. Kangyue Technology Co | Jiangyin Jianghua vs. Shenzhen Hifuture Electric |
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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