Correlation Between Longxing Chemical and Jiangsu Xinri
Specify exactly 2 symbols:
By analyzing existing cross correlation between Longxing Chemical Stock and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Longxing Chemical and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longxing Chemical and Jiangsu Xinri.
Diversification Opportunities for Longxing Chemical and Jiangsu Xinri
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Longxing and Jiangsu is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Longxing Chemical Stock and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Longxing Chemical i.e., Longxing Chemical and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Longxing Chemical and Jiangsu Xinri
Assuming the 90 days trading horizon Longxing Chemical Stock is expected to generate 1.72 times more return on investment than Jiangsu Xinri. However, Longxing Chemical is 1.72 times more volatile than Jiangsu Xinri E Vehicle. It trades about -0.12 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about -0.41 per unit of risk. If you would invest 578.00 in Longxing Chemical Stock on October 13, 2024 and sell it today you would lose (69.00) from holding Longxing Chemical Stock or give up 11.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longxing Chemical Stock vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Longxing Chemical Stock |
| Jiangsu Xinri E |
Longxing Chemical and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longxing Chemical and Jiangsu Xinri
The main advantage of trading using opposite Longxing Chemical and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longxing Chemical position performs unexpectedly, Jiangsu Xinri 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 Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Longxing Chemical vs. State Grid InformationCommunication | Longxing Chemical vs. China World Trade | Longxing Chemical vs. Quectel Wireless Solutions | Longxing Chemical vs. Eastroc Beverage Group |
| Jiangsu Xinri vs. Longxing Chemical Stock | Jiangsu Xinri vs. Jinsanjiang Silicon Material | Jiangsu Xinri vs. Miracll Chemicals Co | Jiangsu Xinri vs. Digiwin Software 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |