Correlation Between Zhejiang JIULI and Jiangxi JDL
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Zhejiang JIULI 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 Zhejiang JIULI with a short position of Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Jiangxi JDL.
Diversification Opportunities for Zhejiang JIULI and Jiangxi JDL
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhejiang and Jiangxi is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech 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 Zhejiang JIULI 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 Zhejiang JIULI Hi tech 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 Zhejiang JIULI i.e., Zhejiang JIULI and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Jiangxi JDL
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to under-perform the Jiangxi JDL. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang JIULI Hi tech is 1.01 times less risky than Jiangxi JDL. The stock trades about -0.33 of its potential returns per unit of risk. The Jiangxi JDL Environmental is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,096 in Jiangxi JDL Environmental on December 1, 2024 and sell it today you would earn a total of 0.00 from holding Jiangxi JDL Environmental or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Jiangxi JDL Environmental
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Jiangxi JDL Environmental |
Zhejiang JIULI and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Jiangxi JDL
The main advantage of trading using opposite Zhejiang JIULI and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI 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.| Zhejiang JIULI vs. State Grid InformationCommunication | Zhejiang JIULI vs. Lander Sports Development | Zhejiang JIULI vs. Jiangsu Jinling Sports | Zhejiang JIULI vs. Tongling Nonferrous Metals |
| Jiangxi JDL vs. GreenTech Environmental Co | Jiangxi JDL vs. Sinosteel Engineering and | Jiangxi JDL vs. By health | Jiangxi JDL vs. Heren Health Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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