Correlation Between Jiangsu Xinning and Flat Glass
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By analyzing existing cross correlation between Jiangsu Xinning Modern and Flat Glass Group, you can compare the effects of market volatilities on Jiangsu Xinning and Flat Glass 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 Flat Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinning and Flat Glass.
Diversification Opportunities for Jiangsu Xinning and Flat Glass
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Flat is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinning Modern and Flat Glass Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flat Glass Group 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 Flat Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flat Glass Group has no effect on the direction of Jiangsu Xinning i.e., Jiangsu Xinning and Flat Glass go up and down completely randomly.
Pair Corralation between Jiangsu Xinning and Flat Glass
Assuming the 90 days trading horizon Jiangsu Xinning Modern is expected to generate 1.05 times more return on investment than Flat Glass. However, Jiangsu Xinning is 1.05 times more volatile than Flat Glass Group. It trades about 0.13 of its potential returns per unit of risk. Flat Glass Group is currently generating about -0.04 per unit of risk. If you would invest 361.00 in Jiangsu Xinning Modern on August 30, 2024 and sell it today you would earn a total of 36.00 from holding Jiangsu Xinning Modern or generate 9.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinning Modern vs. Flat Glass Group
Performance |
| Timeline |
| Jiangsu Xinning Modern |
| Flat Glass Group |
Jiangsu Xinning and Flat Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinning and Flat Glass
The main advantage of trading using opposite Jiangsu Xinning and Flat Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinning position performs unexpectedly, Flat Glass 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 Flat Glass will offset losses from the drop in Flat Glass' long position.| Jiangsu Xinning vs. China Sports Industry | Jiangsu Xinning vs. ZYF Lopsking Aluminum | Jiangsu Xinning vs. Sunny Loan Top | Jiangsu Xinning vs. Anhui Transport Consulting |
| Flat Glass vs. Xiandai Investment Co | Flat Glass vs. Digital China Information | Flat Glass vs. Zhongrun Resources Investment | Flat Glass vs. Yonyou Auto Information |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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