Correlation Between Jinlong Machinery and Telling Telecommunicatio
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By analyzing existing cross correlation between Jinlong Machinery Electronic and Telling Telecommunication Holding, you can compare the effects of market volatilities on Jinlong Machinery and Telling Telecommunicatio 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 Jinlong Machinery with a short position of Telling Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinlong Machinery and Telling Telecommunicatio.
Diversification Opportunities for Jinlong Machinery and Telling Telecommunicatio
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinlong and Telling is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jinlong Machinery Electronic and Telling Telecommunication Hold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telling Telecommunicatio and Jinlong Machinery 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 Jinlong Machinery Electronic are associated (or correlated) with Telling Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telling Telecommunicatio has no effect on the direction of Jinlong Machinery i.e., Jinlong Machinery and Telling Telecommunicatio go up and down completely randomly.
Pair Corralation between Jinlong Machinery and Telling Telecommunicatio
Assuming the 90 days trading horizon Jinlong Machinery Electronic is expected to under-perform the Telling Telecommunicatio. In addition to that, Jinlong Machinery is 1.1 times more volatile than Telling Telecommunication Holding. It trades about -0.01 of its total potential returns per unit of risk. Telling Telecommunication Holding is currently generating about 0.03 per unit of volatility. If you would invest 905.00 in Telling Telecommunication Holding on October 30, 2024 and sell it today you would earn a total of 99.00 from holding Telling Telecommunication Holding or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinlong Machinery Electronic vs. Telling Telecommunication Hold
Performance |
| Timeline |
| Jinlong Machinery |
| Telling Telecommunicatio |
Jinlong Machinery and Telling Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinlong Machinery and Telling Telecommunicatio
The main advantage of trading using opposite Jinlong Machinery and Telling Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinlong Machinery position performs unexpectedly, Telling Telecommunicatio 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 Telling Telecommunicatio will offset losses from the drop in Telling Telecommunicatio's long position.| Jinlong Machinery vs. Jiangsu Yanghe Brewery | Jinlong Machinery vs. Chison Medical Technologies | Jinlong Machinery vs. Tinavi Medical Technologies | Jinlong Machinery vs. Zhongzhu Medical Holdings |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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