Correlation Between Jiangsu Xinning and Suwen Electric
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By analyzing existing cross correlation between Jiangsu Xinning Modern and Suwen Electric Energy, you can compare the effects of market volatilities on Jiangsu Xinning and Suwen Electric 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 Jiangsu Xinning with a short position of Suwen Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinning and Suwen Electric.
Diversification Opportunities for Jiangsu Xinning and Suwen Electric
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiangsu and Suwen is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinning Modern and Suwen Electric Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suwen Electric Energy and Jiangsu Xinning 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 Jiangsu Xinning Modern are associated (or correlated) with Suwen Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suwen Electric Energy has no effect on the direction of Jiangsu Xinning i.e., Jiangsu Xinning and Suwen Electric go up and down completely randomly.
Pair Corralation between Jiangsu Xinning and Suwen Electric
Assuming the 90 days trading horizon Jiangsu Xinning Modern is expected to generate 1.75 times more return on investment than Suwen Electric. However, Jiangsu Xinning is 1.75 times more volatile than Suwen Electric Energy. It trades about 0.11 of its potential returns per unit of risk. Suwen Electric Energy is currently generating about 0.06 per unit of risk. If you would invest 387.00 in Jiangsu Xinning Modern on September 13, 2024 and sell it today you would earn a total of 33.00 from holding Jiangsu Xinning Modern or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinning Modern vs. Suwen Electric Energy
Performance |
| Timeline |
| Jiangsu Xinning Modern |
| Suwen Electric Energy |
Jiangsu Xinning and Suwen Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinning and Suwen Electric
The main advantage of trading using opposite Jiangsu Xinning and Suwen Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinning position performs unexpectedly, Suwen Electric 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 Suwen Electric will offset losses from the drop in Suwen Electric's long position.| Jiangsu Xinning vs. Zoje Resources Investment | Jiangsu Xinning vs. Guangzhou Seagull Kitchen | Jiangsu Xinning vs. Harbin Hatou Investment | Jiangsu Xinning vs. Jointo Energy Investment |
| Suwen Electric vs. Ming Yang Smart | Suwen Electric vs. 159681 | Suwen Electric vs. 159005 | Suwen Electric vs. Loctek Ergonomic Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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