Correlation Between Jinlong Machinery and Zhongshan Broad
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By analyzing existing cross correlation between Jinlong Machinery Electronic and Zhongshan Broad Ocean Motor, you can compare the effects of market volatilities on Jinlong Machinery and Zhongshan Broad 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 Zhongshan Broad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinlong Machinery and Zhongshan Broad.
Diversification Opportunities for Jinlong Machinery and Zhongshan Broad
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinlong and Zhongshan is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jinlong Machinery Electronic and Zhongshan Broad Ocean Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Broad Ocean 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 Zhongshan Broad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Broad Ocean has no effect on the direction of Jinlong Machinery i.e., Jinlong Machinery and Zhongshan Broad go up and down completely randomly.
Pair Corralation between Jinlong Machinery and Zhongshan Broad
Assuming the 90 days trading horizon Jinlong Machinery Electronic is expected to under-perform the Zhongshan Broad. In addition to that, Jinlong Machinery is 1.16 times more volatile than Zhongshan Broad Ocean Motor. It trades about -0.2 of its total potential returns per unit of risk. Zhongshan Broad Ocean Motor is currently generating about 0.04 per unit of volatility. If you would invest 557.00 in Zhongshan Broad Ocean Motor on October 19, 2024 and sell it today you would earn a total of 11.00 from holding Zhongshan Broad Ocean Motor or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinlong Machinery Electronic vs. Zhongshan Broad Ocean Motor
Performance |
| Timeline |
| Jinlong Machinery |
| Zhongshan Broad Ocean |
Jinlong Machinery and Zhongshan Broad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinlong Machinery and Zhongshan Broad
The main advantage of trading using opposite Jinlong Machinery and Zhongshan Broad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinlong Machinery position performs unexpectedly, Zhongshan Broad 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 Zhongshan Broad will offset losses from the drop in Zhongshan Broad's long position.| Jinlong Machinery vs. Hefei Metalforming Mach | Jinlong Machinery vs. Citic Guoan Wine | Jinlong Machinery vs. Guangzhou Restaurants Group | Jinlong Machinery vs. Shenyang Huitian Thermal |
| Zhongshan Broad vs. Shengda Mining Co | Zhongshan Broad vs. Threes Company Media | Zhongshan Broad vs. JiShi Media Co | Zhongshan Broad vs. Mango Excellent Media |
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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