Correlation Between Tianjin Silvery and Jiangyin Jianghua
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By analyzing existing cross correlation between Tianjin Silvery Dragon and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Tianjin Silvery 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 Tianjin Silvery with a short position of Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and Jiangyin Jianghua.
Diversification Opportunities for Tianjin Silvery and Jiangyin Jianghua
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Jiangyin is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua and Tianjin Silvery 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 Tianjin Silvery Dragon 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 Tianjin Silvery i.e., Tianjin Silvery and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Tianjin Silvery and Jiangyin Jianghua
Assuming the 90 days trading horizon Tianjin Silvery Dragon is expected to generate 0.98 times more return on investment than Jiangyin Jianghua. However, Tianjin Silvery Dragon is 1.02 times less risky than Jiangyin Jianghua. It trades about 0.22 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about -0.29 per unit of risk. If you would invest 582.00 in Tianjin Silvery Dragon on September 29, 2024 and sell it today you would earn a total of 95.00 from holding Tianjin Silvery Dragon or generate 16.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Tianjin Silvery Dragon vs. Jiangyin Jianghua Microelectro
Performance |
Timeline |
Tianjin Silvery Dragon |
Jiangyin Jianghua |
Tianjin Silvery and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianjin Silvery and Jiangyin Jianghua
The main advantage of trading using opposite Tianjin Silvery and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery 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.Tianjin Silvery vs. INKON Life Technology | Tianjin Silvery vs. Sinofibers Technology Co | Tianjin Silvery vs. Ningbo Ligong Online | Tianjin Silvery vs. Lootom Telcovideo Network |
Jiangyin Jianghua vs. Hubei Yingtong Telecommunication | Jiangyin Jianghua vs. Western Mining Co | Jiangyin Jianghua vs. Tianjin Silvery Dragon | Jiangyin Jianghua vs. JCHX Mining Management |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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