Correlation Between Longxing Chemical and Jizhong Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Longxing Chemical Stock and Jizhong Energy Resources, you can compare the effects of market volatilities on Longxing Chemical and Jizhong Energy 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 Longxing Chemical with a short position of Jizhong Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longxing Chemical and Jizhong Energy.
Diversification Opportunities for Longxing Chemical and Jizhong Energy
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Longxing and Jizhong is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Longxing Chemical Stock and Jizhong Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jizhong Energy Resources and Longxing Chemical 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 Longxing Chemical Stock are associated (or correlated) with Jizhong Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jizhong Energy Resources has no effect on the direction of Longxing Chemical i.e., Longxing Chemical and Jizhong Energy go up and down completely randomly.
Pair Corralation between Longxing Chemical and Jizhong Energy
Assuming the 90 days trading horizon Longxing Chemical is expected to generate 2.48 times less return on investment than Jizhong Energy. In addition to that, Longxing Chemical is 1.48 times more volatile than Jizhong Energy Resources. It trades about 0.01 of its total potential returns per unit of risk. Jizhong Energy Resources is currently generating about 0.03 per unit of volatility. If you would invest 518.00 in Jizhong Energy Resources on October 14, 2024 and sell it today you would earn a total of 100.00 from holding Jizhong Energy Resources or generate 19.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longxing Chemical Stock vs. Jizhong Energy Resources
Performance |
| Timeline |
| Longxing Chemical Stock |
| Jizhong Energy Resources |
Longxing Chemical and Jizhong Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longxing Chemical and Jizhong Energy
The main advantage of trading using opposite Longxing Chemical and Jizhong Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longxing Chemical position performs unexpectedly, Jizhong Energy 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 Jizhong Energy will offset losses from the drop in Jizhong Energy's long position.| Longxing Chemical vs. China Eastern Airlines | Longxing Chemical vs. Wuhan Yangtze Communication | Longxing Chemical vs. Jiugui Liquor Co | Longxing Chemical vs. Citic Guoan Wine |
| Jizhong Energy vs. Longxing Chemical Stock | Jizhong Energy vs. Shengda Mining Co | Jizhong Energy vs. Jinsanjiang Silicon Material | Jizhong Energy vs. Shanghai Yanpu Metal |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |