Correlation Between Jiangyin Jianghua and Guangdong Ellington
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By analyzing existing cross correlation between Jiangyin Jianghua Microelectronics and Guangdong Ellington Electronics, you can compare the effects of market volatilities on Jiangyin Jianghua and Guangdong Ellington 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 Jiangyin Jianghua with a short position of Guangdong Ellington. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangyin Jianghua and Guangdong Ellington.
Diversification Opportunities for Jiangyin Jianghua and Guangdong Ellington
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangyin and Guangdong is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jiangyin Jianghua Microelectro and Guangdong Ellington Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Ellington and Jiangyin Jianghua 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 Jiangyin Jianghua Microelectronics are associated (or correlated) with Guangdong Ellington. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Ellington has no effect on the direction of Jiangyin Jianghua i.e., Jiangyin Jianghua and Guangdong Ellington go up and down completely randomly.
Pair Corralation between Jiangyin Jianghua and Guangdong Ellington
Assuming the 90 days trading horizon Jiangyin Jianghua Microelectronics is expected to generate 1.01 times more return on investment than Guangdong Ellington. However, Jiangyin Jianghua is 1.01 times more volatile than Guangdong Ellington Electronics. It trades about 0.06 of its potential returns per unit of risk. Guangdong Ellington Electronics is currently generating about 0.02 per unit of risk. If you would invest 1,762 in Jiangyin Jianghua Microelectronics on December 28, 2024 and sell it today you would earn a total of 144.00 from holding Jiangyin Jianghua Microelectronics or generate 8.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangyin Jianghua Microelectro vs. Guangdong Ellington Electronic
Performance |
Timeline |
Jiangyin Jianghua |
Guangdong Ellington |
Jiangyin Jianghua and Guangdong Ellington Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangyin Jianghua and Guangdong Ellington
The main advantage of trading using opposite Jiangyin Jianghua and Guangdong Ellington positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangyin Jianghua position performs unexpectedly, Guangdong Ellington 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 Ellington will offset losses from the drop in Guangdong Ellington's long position.Jiangyin Jianghua vs. Guangdong Wens Foodstuff | Jiangyin Jianghua vs. Shanghai Ziyan Foods | Jiangyin Jianghua vs. Jiugui Liquor Co | Jiangyin Jianghua vs. JuneYao Dairy Co |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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