Correlation Between Jinsanjiang Silicon and Hubei Yingtong
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By analyzing existing cross correlation between Jinsanjiang Silicon Material and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on Jinsanjiang Silicon and Hubei Yingtong 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 Jinsanjiang Silicon with a short position of Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and Hubei Yingtong.
Diversification Opportunities for Jinsanjiang Silicon and Hubei Yingtong
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jinsanjiang and Hubei is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec and Jinsanjiang Silicon 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 Jinsanjiang Silicon Material are associated (or correlated) with Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of Jinsanjiang Silicon i.e., Jinsanjiang Silicon and Hubei Yingtong go up and down completely randomly.
Pair Corralation between Jinsanjiang Silicon and Hubei Yingtong
Assuming the 90 days trading horizon Jinsanjiang Silicon is expected to generate 2.01 times less return on investment than Hubei Yingtong. But when comparing it to its historical volatility, Jinsanjiang Silicon Material is 1.17 times less risky than Hubei Yingtong. It trades about 0.02 of its potential returns per unit of risk. Hubei Yingtong Telecommunication is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,024 in Hubei Yingtong Telecommunication on October 3, 2024 and sell it today you would earn a total of 385.00 from holding Hubei Yingtong Telecommunication or generate 37.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.79% |
Values | Daily Returns |
Jinsanjiang Silicon Material vs. Hubei Yingtong Telecommunicati
Performance |
Timeline |
Jinsanjiang Silicon |
Hubei Yingtong Telec |
Jinsanjiang Silicon and Hubei Yingtong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jinsanjiang Silicon and Hubei Yingtong
The main advantage of trading using opposite Jinsanjiang Silicon and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon position performs unexpectedly, Hubei Yingtong 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 Hubei Yingtong will offset losses from the drop in Hubei Yingtong's long position.Jinsanjiang Silicon vs. Zijin Mining Group | Jinsanjiang Silicon vs. Wanhua Chemical Group | Jinsanjiang Silicon vs. Baoshan Iron Steel | Jinsanjiang Silicon vs. Shandong Gold Mining |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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