Correlation Between Jiangsu Xinning and Qinghaihuading Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Xinning Modern and Qinghaihuading Industrial Co, you can compare the effects of market volatilities on Jiangsu Xinning and Qinghaihuading Industrial 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 Qinghaihuading Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinning and Qinghaihuading Industrial.
Diversification Opportunities for Jiangsu Xinning and Qinghaihuading Industrial
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Qinghaihuading is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinning Modern and Qinghaihuading Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghaihuading Industrial 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 Qinghaihuading Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghaihuading Industrial has no effect on the direction of Jiangsu Xinning i.e., Jiangsu Xinning and Qinghaihuading Industrial go up and down completely randomly.
Pair Corralation between Jiangsu Xinning and Qinghaihuading Industrial
Assuming the 90 days trading horizon Jiangsu Xinning Modern is expected to generate 1.47 times more return on investment than Qinghaihuading Industrial. However, Jiangsu Xinning is 1.47 times more volatile than Qinghaihuading Industrial Co. It trades about 0.14 of its potential returns per unit of risk. Qinghaihuading Industrial Co is currently generating about 0.05 per unit of risk. If you would invest 358.00 in Jiangsu Xinning Modern on September 3, 2024 and sell it today you would earn a total of 32.00 from holding Jiangsu Xinning Modern or generate 8.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinning Modern vs. Qinghaihuading Industrial Co
Performance |
| Timeline |
| Jiangsu Xinning Modern |
| Qinghaihuading Industrial |
Jiangsu Xinning and Qinghaihuading Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinning and Qinghaihuading Industrial
The main advantage of trading using opposite Jiangsu Xinning and Qinghaihuading Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinning position performs unexpectedly, Qinghaihuading Industrial 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 Qinghaihuading Industrial will offset losses from the drop in Qinghaihuading Industrial's long position.| Jiangsu Xinning vs. Caihong Display Devices | Jiangsu Xinning vs. China Sports Industry | Jiangsu Xinning vs. Western Metal Materials | Jiangsu Xinning vs. GRINM Semiconductor Materials |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |