Correlation Between Yuan Longping and Jiangsu Yueda
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By analyzing existing cross correlation between Yuan Longping High tech and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Yuan Longping and Jiangsu Yueda 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 Yuan Longping with a short position of Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuan Longping and Jiangsu Yueda.
Diversification Opportunities for Yuan Longping and Jiangsu Yueda
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yuan and Jiangsu is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Yuan Longping High tech and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment and Yuan Longping 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 Yuan Longping High tech are associated (or correlated) with Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Yuan Longping i.e., Yuan Longping and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Yuan Longping and Jiangsu Yueda
Assuming the 90 days trading horizon Yuan Longping High tech is expected to under-perform the Jiangsu Yueda. But the stock apears to be less risky and, when comparing its historical volatility, Yuan Longping High tech is 1.32 times less risky than Jiangsu Yueda. The stock trades about -0.03 of its potential returns per unit of risk. The Jiangsu Yueda Investment is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 460.00 in Jiangsu Yueda Investment on September 2, 2024 and sell it today you would earn a total of 13.00 from holding Jiangsu Yueda Investment or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuan Longping High tech vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Yuan Longping High |
| Jiangsu Yueda Investment |
Yuan Longping and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuan Longping and Jiangsu Yueda
The main advantage of trading using opposite Yuan Longping and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuan Longping position performs unexpectedly, Jiangsu Yueda 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 Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Yuan Longping vs. Ming Yang Smart | Yuan Longping vs. 159681 | Yuan Longping vs. 159005 | Yuan Longping vs. Loctek Ergonomic Technology |
| Jiangsu Yueda vs. China State Construction | Jiangsu Yueda vs. Poly Real Estate | Jiangsu Yueda vs. China Vanke Co | Jiangsu Yueda vs. China Merchants Shekou |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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