Correlation Between Linzhou Heavy and JS Corrugating
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By analyzing existing cross correlation between Linzhou Heavy Machinery and JS Corrugating Machinery, you can compare the effects of market volatilities on Linzhou Heavy and JS Corrugating 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 Linzhou Heavy with a short position of JS Corrugating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linzhou Heavy and JS Corrugating.
Diversification Opportunities for Linzhou Heavy and JS Corrugating
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Linzhou and 000821 is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Linzhou Heavy Machinery and JS Corrugating Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Corrugating Machinery and Linzhou Heavy 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 Linzhou Heavy Machinery are associated (or correlated) with JS Corrugating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Corrugating Machinery has no effect on the direction of Linzhou Heavy i.e., Linzhou Heavy and JS Corrugating go up and down completely randomly.
Pair Corralation between Linzhou Heavy and JS Corrugating
Assuming the 90 days trading horizon Linzhou Heavy Machinery is expected to generate 1.65 times more return on investment than JS Corrugating. However, Linzhou Heavy is 1.65 times more volatile than JS Corrugating Machinery. It trades about 0.02 of its potential returns per unit of risk. JS Corrugating Machinery is currently generating about -0.14 per unit of risk. If you would invest 393.00 in Linzhou Heavy Machinery on September 28, 2024 and sell it today you would earn a total of 0.00 from holding Linzhou Heavy Machinery or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Linzhou Heavy Machinery vs. JS Corrugating Machinery
Performance |
Timeline |
Linzhou Heavy Machinery |
JS Corrugating Machinery |
Linzhou Heavy and JS Corrugating Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Linzhou Heavy and JS Corrugating
The main advantage of trading using opposite Linzhou Heavy and JS Corrugating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linzhou Heavy position performs unexpectedly, JS Corrugating 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 JS Corrugating will offset losses from the drop in JS Corrugating's long position.Linzhou Heavy vs. Bank of China | Linzhou Heavy vs. Kweichow Moutai Co | Linzhou Heavy vs. PetroChina Co Ltd | Linzhou Heavy vs. Bank of Communications |
JS Corrugating vs. Bank of China | JS Corrugating vs. Kweichow Moutai Co | JS Corrugating vs. PetroChina Co Ltd | JS Corrugating vs. Bank of Communications |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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