Correlation Between Jinsanjiang Silicon and Tianjin Pengling
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By analyzing existing cross correlation between Jinsanjiang Silicon Material and Tianjin Pengling Rubber, you can compare the effects of market volatilities on Jinsanjiang Silicon and Tianjin Pengling 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 Tianjin Pengling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and Tianjin Pengling.
Diversification Opportunities for Jinsanjiang Silicon and Tianjin Pengling
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinsanjiang and Tianjin is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material and Tianjin Pengling Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Pengling Rubber 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 Tianjin Pengling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Pengling Rubber has no effect on the direction of Jinsanjiang Silicon i.e., Jinsanjiang Silicon and Tianjin Pengling go up and down completely randomly.
Pair Corralation between Jinsanjiang Silicon and Tianjin Pengling
Assuming the 90 days trading horizon Jinsanjiang Silicon is expected to generate 1.72 times less return on investment than Tianjin Pengling. But when comparing it to its historical volatility, Jinsanjiang Silicon Material is 1.02 times less risky than Tianjin Pengling. It trades about 0.02 of its potential returns per unit of risk. Tianjin Pengling Rubber is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 361.00 in Tianjin Pengling Rubber on September 26, 2024 and sell it today you would earn a total of 121.00 from holding Tianjin Pengling Rubber or generate 33.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jinsanjiang Silicon Material vs. Tianjin Pengling Rubber
Performance |
Timeline |
Jinsanjiang Silicon |
Tianjin Pengling Rubber |
Jinsanjiang Silicon and Tianjin Pengling Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jinsanjiang Silicon and Tianjin Pengling
The main advantage of trading using opposite Jinsanjiang Silicon and Tianjin Pengling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon position performs unexpectedly, Tianjin Pengling 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 Tianjin Pengling will offset losses from the drop in Tianjin Pengling'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 |
Tianjin Pengling vs. Industrial and Commercial | Tianjin Pengling vs. Agricultural Bank of | Tianjin Pengling vs. China Construction Bank | Tianjin Pengling vs. Bank of China |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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