Correlation Between Shenzhen Hifuture and Jiangyin Jianghua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Hifuture Electric and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Shenzhen Hifuture 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 Shenzhen Hifuture with a short position of Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Jiangyin Jianghua.
Diversification Opportunities for Shenzhen Hifuture and Jiangyin Jianghua
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Jiangyin is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua and Shenzhen Hifuture 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 Shenzhen Hifuture Electric 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 Shenzhen Hifuture i.e., Shenzhen Hifuture and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Jiangyin Jianghua
Assuming the 90 days trading horizon Shenzhen Hifuture is expected to generate 1.75 times less return on investment than Jiangyin Jianghua. But when comparing it to its historical volatility, Shenzhen Hifuture Electric is 1.38 times less risky than Jiangyin Jianghua. It trades about 0.18 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,152 in Jiangyin Jianghua Microelectronics on September 14, 2024 and sell it today you would earn a total of 740.00 from holding Jiangyin Jianghua Microelectronics or generate 64.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.25% |
Values | Daily Returns |
Shenzhen Hifuture Electric vs. Jiangyin Jianghua Microelectro
Performance |
Timeline |
Shenzhen Hifuture |
Jiangyin Jianghua |
Shenzhen Hifuture and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Hifuture and Jiangyin Jianghua
The main advantage of trading using opposite Shenzhen Hifuture and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture 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.Shenzhen Hifuture vs. Agricultural Bank of | Shenzhen Hifuture vs. Industrial and Commercial | Shenzhen Hifuture vs. Bank of China | Shenzhen Hifuture vs. PetroChina Co Ltd |
Jiangyin Jianghua vs. HeNan Splendor Science | Jiangyin Jianghua vs. Bank of Suzhou | Jiangyin Jianghua vs. Shandong Longquan Pipeline | Jiangyin Jianghua vs. Agricultural Bank of |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Money Managers Screen money managers from public funds and ETFs managed around the world |