Correlation Between Chengdu Xinzhu and Jiangyin Jianghua
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By analyzing existing cross correlation between Chengdu Xinzhu RoadBridge and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Chengdu Xinzhu and Jiangyin Jianghua 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 Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xinzhu and Jiangyin Jianghua.
Diversification Opportunities for Chengdu Xinzhu and Jiangyin Jianghua
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengdu and Jiangyin is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xinzhu RoadBridge and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua 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 Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of Chengdu Xinzhu i.e., Chengdu Xinzhu and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Chengdu Xinzhu and Jiangyin Jianghua
Assuming the 90 days trading horizon Chengdu Xinzhu RoadBridge is expected to generate 1.73 times more return on investment than Jiangyin Jianghua. However, Chengdu Xinzhu is 1.73 times more volatile than Jiangyin Jianghua Microelectronics. It trades about 0.0 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about -0.1 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xinzhu RoadBridge vs. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Chengdu Xinzhu RoadBridge |
| Jiangyin Jianghua |
Chengdu Xinzhu and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xinzhu and Jiangyin Jianghua
The main advantage of trading using opposite Chengdu Xinzhu and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xinzhu position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua'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 |
| Jiangyin Jianghua vs. Shaanxi Construction Machinery | Jiangyin Jianghua vs. Allied Machinery Co | Jiangyin Jianghua vs. Huasi Agricultural Development | Jiangyin Jianghua vs. Jiangsu Yanghe Brewery |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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