Correlation Between Allwin Telecommunicatio and Jingjin Environmental
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By analyzing existing cross correlation between Allwin Telecommunication Co and Jingjin Environmental Protection, you can compare the effects of market volatilities on Allwin Telecommunicatio and Jingjin Environmental 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 Jingjin Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allwin Telecommunicatio and Jingjin Environmental.
Diversification Opportunities for Allwin Telecommunicatio and Jingjin Environmental
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allwin and Jingjin is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Allwin Telecommunication Co and Jingjin Environmental Protecti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jingjin Environmental 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 Jingjin Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jingjin Environmental has no effect on the direction of Allwin Telecommunicatio i.e., Allwin Telecommunicatio and Jingjin Environmental go up and down completely randomly.
Pair Corralation between Allwin Telecommunicatio and Jingjin Environmental
Assuming the 90 days trading horizon Allwin Telecommunication Co is expected to generate 1.83 times more return on investment than Jingjin Environmental. However, Allwin Telecommunicatio is 1.83 times more volatile than Jingjin Environmental Protection. It trades about 0.03 of its potential returns per unit of risk. Jingjin Environmental Protection is currently generating about -0.01 per unit of risk. If you would invest 654.00 in Allwin Telecommunication Co on September 12, 2024 and sell it today you would earn a total of 59.00 from holding Allwin Telecommunication Co or generate 9.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allwin Telecommunication Co vs. Jingjin Environmental Protecti
Performance |
| Timeline |
| Allwin Telecommunicatio |
| Jingjin Environmental |
Allwin Telecommunicatio and Jingjin Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allwin Telecommunicatio and Jingjin Environmental
The main advantage of trading using opposite Allwin Telecommunicatio and Jingjin Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allwin Telecommunicatio position performs unexpectedly, Jingjin Environmental 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 Jingjin Environmental will offset losses from the drop in Jingjin Environmental'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 |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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