Correlation Between Jinlong Machinery and Guangzhou Haige
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By analyzing existing cross correlation between Jinlong Machinery Electronic and Guangzhou Haige Communications, you can compare the effects of market volatilities on Jinlong Machinery and Guangzhou Haige 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 Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinlong Machinery and Guangzhou Haige.
Diversification Opportunities for Jinlong Machinery and Guangzhou Haige
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinlong and Guangzhou is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jinlong Machinery Electronic and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm 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 Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Jinlong Machinery i.e., Jinlong Machinery and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Jinlong Machinery and Guangzhou Haige
Assuming the 90 days trading horizon Jinlong Machinery Electronic is expected to generate 1.75 times more return on investment than Guangzhou Haige. However, Jinlong Machinery is 1.75 times more volatile than Guangzhou Haige Communications. It trades about 0.09 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.03 per unit of risk. If you would invest 301.00 in Jinlong Machinery Electronic on October 18, 2024 and sell it today you would earn a total of 144.00 from holding Jinlong Machinery Electronic or generate 47.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinlong Machinery Electronic vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Jinlong Machinery |
| Guangzhou Haige Comm |
Jinlong Machinery and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinlong Machinery and Guangzhou Haige
The main advantage of trading using opposite Jinlong Machinery and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinlong Machinery position performs unexpectedly, Guangzhou Haige 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 Guangzhou Haige will offset losses from the drop in Guangzhou Haige's long position.| Jinlong Machinery vs. China Eastern Airlines | Jinlong Machinery vs. Guocheng Mining Co | Jinlong Machinery vs. Dezhan HealthCare Co | Jinlong Machinery vs. Dalian Thermal Power |
| Guangzhou Haige vs. Shanghai Yanpu Metal | Guangzhou Haige vs. Rising Nonferrous Metals | Guangzhou Haige vs. Uroica Mining Safety | Guangzhou Haige vs. Jinlong Machinery Electronic |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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