Correlation Between 159681 and Jiangsu Xinri
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By analyzing existing cross correlation between 159681 and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on 159681 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 159681 with a short position of Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Jiangsu Xinri.
Diversification Opportunities for 159681 and Jiangsu Xinri
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 159681 and Jiangsu is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding 159681 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 159681 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 159681 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 159681 i.e., 159681 and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between 159681 and Jiangsu Xinri
Assuming the 90 days trading horizon 159681 is expected to generate 0.87 times more return on investment than Jiangsu Xinri. However, 159681 is 1.14 times less risky than Jiangsu Xinri. It trades about -0.08 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about -0.11 per unit of risk. If you would invest 97.00 in 159681 on October 29, 2024 and sell it today you would lose (3.00) from holding 159681 or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| 159681 |
| Jiangsu Xinri E |
159681 and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Jiangsu Xinri
The main advantage of trading using opposite 159681 and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 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.The idea behind 159681 and Jiangsu Xinri E Vehicle pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Jiangsu Xinri vs. Hainan Mining Co | Jiangsu Xinri vs. 360 Security Technology | Jiangsu Xinri vs. ROPEOK Technology Group | Jiangsu Xinri vs. Cansino Biologics |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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