Correlation Between Lander Sports and Jiangxi Hengda
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By analyzing existing cross correlation between Lander Sports Development and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Lander Sports and Jiangxi Hengda 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 Lander Sports with a short position of Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lander Sports and Jiangxi Hengda.
Diversification Opportunities for Lander Sports and Jiangxi Hengda
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lander and Jiangxi is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Lander Sports Development and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi and Lander Sports 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 Lander Sports Development are associated (or correlated) with Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Lander Sports i.e., Lander Sports and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Lander Sports and Jiangxi Hengda
Assuming the 90 days trading horizon Lander Sports is expected to generate 1.08 times less return on investment than Jiangxi Hengda. In addition to that, Lander Sports is 1.18 times more volatile than Jiangxi Hengda Hi Tech. It trades about 0.16 of its total potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about 0.2 per unit of volatility. If you would invest 403.00 in Jiangxi Hengda Hi Tech on August 29, 2024 and sell it today you would earn a total of 158.00 from holding Jiangxi Hengda Hi Tech or generate 39.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lander Sports Development vs. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Lander Sports Development |
| Jiangxi Hengda Hi |
Lander Sports and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lander Sports and Jiangxi Hengda
The main advantage of trading using opposite Lander Sports and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lander Sports position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.| Lander Sports vs. Cambricon Technologies Corp | Lander Sports vs. Empyrean Technology Co | Lander Sports vs. Kuang Chi Technologies | Lander Sports vs. Gansu Jiu Steel |
| Jiangxi Hengda vs. Wanhua Chemical Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda vs. Shandong Gold Mining | Jiangxi Hengda vs. Rongsheng Petrochemical Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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