Correlation Between Chengdu Xinzhu and Jinlong Machinery
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By analyzing existing cross correlation between Chengdu Xinzhu RoadBridge and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Chengdu Xinzhu and Jinlong Machinery 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 Chengdu Xinzhu with a short position of Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xinzhu and Jinlong Machinery.
Diversification Opportunities for Chengdu Xinzhu and Jinlong Machinery
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chengdu and Jinlong is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xinzhu RoadBridge and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery and Chengdu Xinzhu 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 Chengdu Xinzhu RoadBridge are associated (or correlated) with Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Chengdu Xinzhu i.e., Chengdu Xinzhu and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Chengdu Xinzhu and Jinlong Machinery
Assuming the 90 days trading horizon Chengdu Xinzhu RoadBridge is expected to generate 1.32 times more return on investment than Jinlong Machinery. However, Chengdu Xinzhu is 1.32 times more volatile than Jinlong Machinery Electronic. It trades about 0.0 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about -0.2 per unit of risk. If you would invest 546.00 in Chengdu Xinzhu RoadBridge on October 19, 2024 and sell it today you would lose (13.00) from holding Chengdu Xinzhu RoadBridge or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xinzhu RoadBridge vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Chengdu Xinzhu RoadBridge |
| Jinlong Machinery |
Chengdu Xinzhu and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xinzhu and Jinlong Machinery
The main advantage of trading using opposite Chengdu Xinzhu and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xinzhu position performs unexpectedly, Jinlong Machinery 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery's long position.| Chengdu Xinzhu vs. Songz Automobile Air | Chengdu Xinzhu vs. Changchun Engley Automobile | Chengdu Xinzhu vs. Iat Automobile Technology | Chengdu Xinzhu vs. Chongqing Changan Automobile |
| Jinlong Machinery vs. Hefei Metalforming Mach | Jinlong Machinery vs. Citic Guoan Wine | Jinlong Machinery vs. Guangzhou Restaurants Group | Jinlong Machinery vs. Shenyang Huitian Thermal |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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