Correlation Between China Longyuan and Jiangxi JDL
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Longyuan Power and Jiangxi JDL Environmental, you can compare the effects of market volatilities on China Longyuan and Jiangxi JDL 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 China Longyuan with a short position of Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Longyuan and Jiangxi JDL.
Diversification Opportunities for China Longyuan and Jiangxi JDL
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Jiangxi is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding China Longyuan Power and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental and China Longyuan 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 China Longyuan Power are associated (or correlated) with Jiangxi JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of China Longyuan i.e., China Longyuan and Jiangxi JDL go up and down completely randomly.
Pair Corralation between China Longyuan and Jiangxi JDL
Assuming the 90 days trading horizon China Longyuan Power is expected to under-perform the Jiangxi JDL. But the stock apears to be less risky and, when comparing its historical volatility, China Longyuan Power is 1.2 times less risky than Jiangxi JDL. The stock trades about -0.02 of its potential returns per unit of risk. The Jiangxi JDL Environmental is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,351 in Jiangxi JDL Environmental on September 14, 2024 and sell it today you would lose (103.00) from holding Jiangxi JDL Environmental or give up 7.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Longyuan Power vs. Jiangxi JDL Environmental
Performance |
| Timeline |
| China Longyuan Power |
| Jiangxi JDL Environmental |
China Longyuan and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Longyuan and Jiangxi JDL
The main advantage of trading using opposite China Longyuan and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Longyuan position performs unexpectedly, Jiangxi JDL 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 JDL will offset losses from the drop in Jiangxi JDL's long position.| China Longyuan vs. Zhejiang Construction Investment | China Longyuan vs. Zhuhai Comleader Information | China Longyuan vs. Westone Information Industry | China Longyuan vs. Jiugui Liquor Co |
| Jiangxi JDL vs. Lutian Machinery Co | Jiangxi JDL vs. China Longyuan Power | Jiangxi JDL vs. PetroChina Co Ltd | Jiangxi JDL vs. Bank of China |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |