Correlation Between Allwin Telecommunicatio and Jiangsu Yike
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By analyzing existing cross correlation between Allwin Telecommunication Co and Jiangsu Yike Food, you can compare the effects of market volatilities on Allwin Telecommunicatio and Jiangsu Yike 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 Allwin Telecommunicatio with a short position of Jiangsu Yike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allwin Telecommunicatio and Jiangsu Yike.
Diversification Opportunities for Allwin Telecommunicatio and Jiangsu Yike
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allwin and Jiangsu is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Allwin Telecommunication Co and Jiangsu Yike Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yike Food and Allwin Telecommunicatio 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 Allwin Telecommunication Co are associated (or correlated) with Jiangsu Yike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yike Food has no effect on the direction of Allwin Telecommunicatio i.e., Allwin Telecommunicatio and Jiangsu Yike go up and down completely randomly.
Pair Corralation between Allwin Telecommunicatio and Jiangsu Yike
Assuming the 90 days trading horizon Allwin Telecommunication Co is expected to generate 1.2 times more return on investment than Jiangsu Yike. However, Allwin Telecommunicatio is 1.2 times more volatile than Jiangsu Yike Food. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Yike Food is currently generating about 0.02 per unit of risk. If you would invest 645.00 in Allwin Telecommunication Co on September 12, 2024 and sell it today you would earn a total of 101.00 from holding Allwin Telecommunication Co or generate 15.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allwin Telecommunication Co vs. Jiangsu Yike Food
Performance |
| Timeline |
| Allwin Telecommunicatio |
| Jiangsu Yike Food |
Allwin Telecommunicatio and Jiangsu Yike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allwin Telecommunicatio and Jiangsu Yike
The main advantage of trading using opposite Allwin Telecommunicatio and Jiangsu Yike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allwin Telecommunicatio position performs unexpectedly, Jiangsu Yike 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 Yike will offset losses from the drop in Jiangsu Yike's long position.| Allwin Telecommunicatio vs. Gansu Jiu Steel | Allwin Telecommunicatio vs. Shandong Mining Machinery | Allwin Telecommunicatio vs. Aba Chemicals Corp | Allwin Telecommunicatio vs. BlueFocus Communication Group |
| Jiangsu Yike vs. Shenzhen Clou Electronics | Jiangsu Yike vs. Allwin Telecommunication Co | Jiangsu Yike vs. Zhongtong Guomai Communication | Jiangsu Yike vs. Tianjin Hi Tech Development |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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