Correlation Between Jiangxi Hengda and Guangdong Cellwise
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Guangdong Cellwise Microelectronics, you can compare the effects of market volatilities on Jiangxi Hengda 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 Jiangxi Hengda with a short position of Guangdong Cellwise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Guangdong Cellwise.
Diversification Opportunities for Jiangxi Hengda and Guangdong Cellwise
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Guangdong is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and Guangdong Cellwise Microelectr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Cellwise and Jiangxi Hengda 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 Jiangxi Hengda Hi Tech 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 Jiangxi Hengda i.e., Jiangxi Hengda and Guangdong Cellwise go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Guangdong Cellwise
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to under-perform the Guangdong Cellwise. In addition to that, Jiangxi Hengda is 1.33 times more volatile than Guangdong Cellwise Microelectronics. It trades about -0.05 of its total potential returns per unit of risk. Guangdong Cellwise Microelectronics is currently generating about 0.12 per unit of volatility. If you would invest 4,866 in Guangdong Cellwise Microelectronics on September 25, 2024 and sell it today you would earn a total of 325.00 from holding Guangdong Cellwise Microelectronics or generate 6.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. Guangdong Cellwise Microelectr
Performance |
Timeline |
Jiangxi Hengda Hi |
Guangdong Cellwise |
Jiangxi Hengda and Guangdong Cellwise Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangxi Hengda and Guangdong Cellwise
The main advantage of trading using opposite Jiangxi Hengda and Guangdong Cellwise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda 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.Jiangxi Hengda vs. Zijin Mining Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda vs. Shandong Gold Mining | Jiangxi Hengda vs. Rongsheng Petrochemical Co |
Guangdong Cellwise vs. Threes Company Media | Guangdong Cellwise vs. Fujian Newland Computer | Guangdong Cellwise vs. Guangdong Shenglu Telecommunication | Guangdong Cellwise vs. Jiangxi Hengda Hi Tech |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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