Correlation Between Jinlong Machinery and Chengdu Spaceon
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By analyzing existing cross correlation between Jinlong Machinery Electronic and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Jinlong Machinery and Chengdu Spaceon 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 Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinlong Machinery and Chengdu Spaceon.
Diversification Opportunities for Jinlong Machinery and Chengdu Spaceon
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinlong and Chengdu is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jinlong Machinery Electronic and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Jinlong Machinery i.e., Jinlong Machinery and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Jinlong Machinery and Chengdu Spaceon
Assuming the 90 days trading horizon Jinlong Machinery Electronic is expected to under-perform the Chengdu Spaceon. In addition to that, Jinlong Machinery is 1.61 times more volatile than Chengdu Spaceon Electronics. It trades about -0.46 of its total potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about -0.4 per unit of volatility. If you would invest 1,812 in Chengdu Spaceon Electronics on October 13, 2024 and sell it today you would lose (305.00) from holding Chengdu Spaceon Electronics or give up 16.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinlong Machinery Electronic vs. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Jinlong Machinery |
| Chengdu Spaceon Elec |
Jinlong Machinery and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinlong Machinery and Chengdu Spaceon
The main advantage of trading using opposite Jinlong Machinery and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinlong Machinery position performs unexpectedly, Chengdu Spaceon 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 Spaceon will offset losses from the drop in Chengdu Spaceon's long position.| Jinlong Machinery vs. Anhui Transport Consulting | Jinlong Machinery vs. Heilongjiang Transport Development | Jinlong Machinery vs. Xiangpiaopiao Food Co | Jinlong Machinery vs. Xinjiang Tianrun Dairy |
| Chengdu Spaceon vs. Lutian Machinery Co | Chengdu Spaceon vs. Jiahe Foods Industry | Chengdu Spaceon vs. Jinlong Machinery Electronic | Chengdu Spaceon vs. Shenzhen Zhongzhuang Construction |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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