Correlation Between Jinsanjiang (Zhaoqing) and Guangdong Cellwise

Can any of the company-specific risk be diversified away by investing in both Jinsanjiang (Zhaoqing) and Guangdong Cellwise at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jinsanjiang (Zhaoqing) and Guangdong Cellwise into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jinsanjiang Silicon Material and Guangdong Cellwise Microelectronics, you can compare the effects of market volatilities on Jinsanjiang (Zhaoqing) and Guangdong Cellwise 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 (Zhaoqing) with a short position of Guangdong Cellwise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang (Zhaoqing) and Guangdong Cellwise.

Diversification Opportunities for Jinsanjiang (Zhaoqing) and Guangdong Cellwise

0.0

Correlation Coefficient

Jinsanjiang (Zhaoqing)  Guangdong Cellwise

Pay attention - limited upside

The 3 months correlation between Jinsanjiang and Guangdong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material and Guangdong Cellwise Microelectr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Cellwise and Jinsanjiang (Zhaoqing) 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 Guangdong Cellwise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Cellwise has no effect on the direction of Jinsanjiang (Zhaoqing) i.e., Jinsanjiang (Zhaoqing) and Guangdong Cellwise go up and down completely randomly.

Pair Corralation between Jinsanjiang (Zhaoqing) and Guangdong Cellwise

If you would invest  0.00  in Guangdong Cellwise Microelectronics on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Guangdong Cellwise Microelectronics or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.72%
Values	Daily Returns

Jinsanjiang Silicon Material  vs.  Guangdong Cellwise Microelectr

Jinsanjiang (Zhaoqing)

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jinsanjiang Silicon Material has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Jinsanjiang (Zhaoqing) is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Guangdong Cellwise

Risk-Adjusted Performance

Very Weak

Over the last 90 days Guangdong Cellwise Microelectronics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Guangdong Cellwise is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jinsanjiang (Zhaoqing) and Guangdong Cellwise

The main advantage of trading using opposite Jinsanjiang (Zhaoqing) and Guangdong Cellwise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang (Zhaoqing) position performs unexpectedly, Guangdong Cellwise 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 Guangdong Cellwise will offset losses from the drop in Guangdong Cellwise's long position.

The idea behind Jinsanjiang Silicon Material and Guangdong Cellwise Microelectronics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.