Correlation Between Xiandai Investment and JS Corrugating
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By analyzing existing cross correlation between Xiandai Investment Co and JS Corrugating Machinery, you can compare the effects of market volatilities on Xiandai Investment and JS Corrugating 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 Xiandai Investment with a short position of JS Corrugating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and JS Corrugating.
Diversification Opportunities for Xiandai Investment and JS Corrugating
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiandai and 000821 is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and JS Corrugating Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Corrugating Machinery and Xiandai Investment 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 Xiandai Investment Co are associated (or correlated) with JS Corrugating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Corrugating Machinery has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and JS Corrugating go up and down completely randomly.
Pair Corralation between Xiandai Investment and JS Corrugating
Assuming the 90 days trading horizon Xiandai Investment Co is expected to generate 0.85 times more return on investment than JS Corrugating. However, Xiandai Investment Co is 1.17 times less risky than JS Corrugating. It trades about 0.19 of its potential returns per unit of risk. JS Corrugating Machinery is currently generating about 0.03 per unit of risk. If you would invest 414.00 in Xiandai Investment Co on September 5, 2024 and sell it today you would earn a total of 47.00 from holding Xiandai Investment Co or generate 11.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. JS Corrugating Machinery
Performance |
| Timeline |
| Xiandai Investment |
| JS Corrugating Machinery |
Xiandai Investment and JS Corrugating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and JS Corrugating
The main advantage of trading using opposite Xiandai Investment and JS Corrugating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, JS Corrugating 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 JS Corrugating will offset losses from the drop in JS Corrugating's long position.| Xiandai Investment vs. Cultural Investment Holdings | Xiandai Investment vs. Westone Information Industry | Xiandai Investment vs. Nuode Investment Co | Xiandai Investment vs. Hangzhou Gisway Information |
| JS Corrugating vs. Jiugui Liquor Co | JS Corrugating vs. HaiXin Foods Co | JS Corrugating vs. Xiwang Foodstuffs Co | JS Corrugating vs. Hainan Airlines 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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