Correlation Between Fujian Newland and Jiangsu Jinling
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By analyzing existing cross correlation between Fujian Newland Computer and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Fujian Newland and Jiangsu Jinling 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 Fujian Newland with a short position of Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and Jiangsu Jinling.
Diversification Opportunities for Fujian Newland and Jiangsu Jinling
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and Jiangsu is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports and Fujian Newland 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 Fujian Newland Computer are associated (or correlated) with Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Fujian Newland i.e., Fujian Newland and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Fujian Newland and Jiangsu Jinling
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 0.85 times more return on investment than Jiangsu Jinling. However, Fujian Newland Computer is 1.18 times less risky than Jiangsu Jinling. It trades about 0.04 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about -0.02 per unit of risk. If you would invest 1,423 in Fujian Newland Computer on October 27, 2024 and sell it today you would earn a total of 576.00 from holding Fujian Newland Computer or generate 40.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Newland Computer vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Fujian Newland Computer |
| Jiangsu Jinling Sports |
Fujian Newland and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Newland and Jiangsu Jinling
The main advantage of trading using opposite Fujian Newland and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Fujian Newland vs. Shantui Construction Machinery | Fujian Newland vs. Senci Electric Machinery | Fujian Newland vs. Linzhou Heavy Machinery | Fujian Newland vs. Fujian Oriental Silver |
| Jiangsu Jinling vs. Iat Automobile Technology | Jiangsu Jinling vs. Bonree Data Technology | Jiangsu Jinling vs. Emdoor Information Co | Jiangsu Jinling vs. East Money Information |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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