Correlation Between Jinlong Machinery and Chengdu Xinzhu
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By analyzing existing cross correlation between Jinlong Machinery Electronic and Chengdu Xinzhu RoadBridge, you can compare the effects of market volatilities on Jinlong Machinery and Chengdu Xinzhu 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 Chengdu Xinzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinlong Machinery and Chengdu Xinzhu.
Diversification Opportunities for Jinlong Machinery and Chengdu Xinzhu
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jinlong and Chengdu is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Jinlong Machinery Electronic and Chengdu Xinzhu RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xinzhu RoadBridge 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 Chengdu Xinzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xinzhu RoadBridge has no effect on the direction of Jinlong Machinery i.e., Jinlong Machinery and Chengdu Xinzhu go up and down completely randomly.
Pair Corralation between Jinlong Machinery and Chengdu Xinzhu
Assuming the 90 days trading horizon Jinlong Machinery Electronic is expected to under-perform the Chengdu Xinzhu. But the stock apears to be less risky and, when comparing its historical volatility, Jinlong Machinery Electronic is 1.32 times less risky than Chengdu Xinzhu. The stock trades about -0.2 of its potential returns per unit of risk. The Chengdu Xinzhu RoadBridge is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 546.00 in Chengdu Xinzhu RoadBridge on October 19, 2024 and sell it today you would lose (13.00) from holding Chengdu Xinzhu RoadBridge or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinlong Machinery Electronic vs. Chengdu Xinzhu RoadBridge
Performance |
| Timeline |
| Jinlong Machinery |
| Chengdu Xinzhu RoadBridge |
Jinlong Machinery and Chengdu Xinzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinlong Machinery and Chengdu Xinzhu
The main advantage of trading using opposite Jinlong Machinery and Chengdu Xinzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinlong Machinery position performs unexpectedly, Chengdu Xinzhu 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 Chengdu Xinzhu will offset losses from the drop in Chengdu Xinzhu'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 |
| Chengdu Xinzhu vs. Songz Automobile Air | Chengdu Xinzhu vs. Changchun Engley Automobile | Chengdu Xinzhu vs. Iat Automobile Technology | Chengdu Xinzhu vs. Chongqing Changan Automobile |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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