Correlation Between City Development and Jiangxi Hengda
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By analyzing existing cross correlation between City Development Environment and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on City Development 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 City Development with a short position of Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Development and Jiangxi Hengda.
Diversification Opportunities for City Development and Jiangxi Hengda
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between City and Jiangxi is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding City Development Environment 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 City Development 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 City Development Environment 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 City Development i.e., City Development and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between City Development and Jiangxi Hengda
Assuming the 90 days trading horizon City Development Environment is expected to generate 0.64 times more return on investment than Jiangxi Hengda. However, City Development Environment is 1.57 times less risky than Jiangxi Hengda. It trades about 0.03 of its potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about -0.01 per unit of risk. If you would invest 981.00 in City Development Environment on October 16, 2024 and sell it today you would earn a total of 232.00 from holding City Development Environment or generate 23.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
City Development Environment vs. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| City Development Env |
| Jiangxi Hengda Hi |
City Development and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Development and Jiangxi Hengda
The main advantage of trading using opposite City Development and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Development 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.| City Development vs. Dongfeng Automobile Co | City Development vs. Chengtun Mining Group | City Development vs. Zhejiang Qianjiang Motorcycle | City Development vs. Haima Automobile Group |
| Jiangxi Hengda vs. Nanxing Furniture Machinery | Jiangxi Hengda vs. Zhejiang Yinlun Machinery | Jiangxi Hengda vs. Servyou Software Group | Jiangxi Hengda vs. Keda Clean Energy |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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