Correlation Between Tongxing Environmental and Jonjee Hi
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By analyzing existing cross correlation between Tongxing Environmental Protection and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on Tongxing Environmental 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 Tongxing Environmental with a short position of Jonjee Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongxing Environmental and Jonjee Hi.
Diversification Opportunities for Tongxing Environmental and Jonjee Hi
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tongxing and Jonjee is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Tongxing Environmental Protect 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 Tongxing Environmental 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 Tongxing Environmental Protection 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 Tongxing Environmental i.e., Tongxing Environmental and Jonjee Hi go up and down completely randomly.
Pair Corralation between Tongxing Environmental and Jonjee Hi
Assuming the 90 days trading horizon Tongxing Environmental Protection is expected to generate 2.48 times more return on investment than Jonjee Hi. However, Tongxing Environmental is 2.48 times more volatile than Jonjee Hi tech Industrial. It trades about -0.04 of its potential returns per unit of risk. Jonjee Hi tech Industrial is currently generating about -0.17 per unit of risk. If you would invest 1,573 in Tongxing Environmental Protection on October 5, 2024 and sell it today you would lose (70.00) from holding Tongxing Environmental Protection or give up 4.45% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tongxing Environmental Protect vs. Jonjee Hi tech Industrial
Performance |
Timeline |
Tongxing Environmental |
Jonjee Hi tech |
Tongxing Environmental and Jonjee Hi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tongxing Environmental and Jonjee Hi
The main advantage of trading using opposite Tongxing Environmental and Jonjee Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongxing Environmental 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.Tongxing Environmental vs. Industrial and Commercial | Tongxing Environmental vs. China Construction Bank | Tongxing Environmental vs. Agricultural Bank of | Tongxing Environmental vs. Bank of China |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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