Correlation Between Jiangsu Xinning and Everdisplay Optronics
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By analyzing existing cross correlation between Jiangsu Xinning Modern and Everdisplay Optronics Shanghai, you can compare the effects of market volatilities on Jiangsu Xinning and Everdisplay Optronics 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 Everdisplay Optronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinning and Everdisplay Optronics.
Diversification Opportunities for Jiangsu Xinning and Everdisplay Optronics
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Everdisplay is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinning Modern and Everdisplay Optronics Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everdisplay Optronics 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 Everdisplay Optronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everdisplay Optronics has no effect on the direction of Jiangsu Xinning i.e., Jiangsu Xinning and Everdisplay Optronics go up and down completely randomly.
Pair Corralation between Jiangsu Xinning and Everdisplay Optronics
Assuming the 90 days trading horizon Jiangsu Xinning Modern is expected to generate 2.63 times more return on investment than Everdisplay Optronics. However, Jiangsu Xinning is 2.63 times more volatile than Everdisplay Optronics Shanghai. It trades about 0.02 of its potential returns per unit of risk. Everdisplay Optronics Shanghai is currently generating about -0.01 per unit of risk. If you would invest 402.00 in Jiangsu Xinning Modern on August 26, 2024 and sell it today you would lose (29.00) from holding Jiangsu Xinning Modern or give up 7.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinning Modern vs. Everdisplay Optronics Shanghai
Performance |
| Timeline |
| Jiangsu Xinning Modern |
| Everdisplay Optronics |
Jiangsu Xinning and Everdisplay Optronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinning and Everdisplay Optronics
The main advantage of trading using opposite Jiangsu Xinning and Everdisplay Optronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinning position performs unexpectedly, Everdisplay Optronics 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 Everdisplay Optronics will offset losses from the drop in Everdisplay Optronics' long position.| Jiangsu Xinning vs. SUNSEA Telecommunications Co | Jiangsu Xinning vs. Gome Telecom Equipment | Jiangsu Xinning vs. Servyou Software Group | Jiangsu Xinning vs. China Satellite 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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