Correlation Between Shanghai Jinfeng and Jiangyin Jianghua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Jinfeng Wine and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Shanghai Jinfeng 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 Shanghai Jinfeng with a short position of Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Jiangyin Jianghua.
Diversification Opportunities for Shanghai Jinfeng and Jiangyin Jianghua
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Jiangyin is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua and Shanghai Jinfeng 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 Shanghai Jinfeng Wine 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 Shanghai Jinfeng i.e., Shanghai Jinfeng and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Jiangyin Jianghua
Assuming the 90 days trading horizon Shanghai Jinfeng Wine is expected to under-perform the Jiangyin Jianghua. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Jinfeng Wine is 1.79 times less risky than Jiangyin Jianghua. The stock trades about -0.2 of its potential returns per unit of risk. The Jiangyin Jianghua Microelectronics is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,821 in Jiangyin Jianghua Microelectronics on December 10, 2024 and sell it today you would lose (30.00) from holding Jiangyin Jianghua Microelectronics or give up 1.65% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Jinfeng Wine vs. Jiangyin Jianghua Microelectro
Performance |
Timeline |
Shanghai Jinfeng Wine |
Jiangyin Jianghua |
Shanghai Jinfeng and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Jinfeng and Jiangyin Jianghua
The main advantage of trading using opposite Shanghai Jinfeng and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng 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.Shanghai Jinfeng vs. Sihui Fuji Electronics | Shanghai Jinfeng vs. Nanjing Yunhai Special | Shanghai Jinfeng vs. Zhejiang Yongjin Metal | Shanghai Jinfeng vs. Xinya Electronic Co |
Jiangyin Jianghua vs. Hubei Geoway Investment | Jiangyin Jianghua vs. Gem Year Industrial Co | Jiangyin Jianghua vs. Cultural Investment Holdings | Jiangyin Jianghua vs. Huawen Media Investment |
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.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |