Correlation Between Jinlong Machinery and Ingenic Semiconductor
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By analyzing existing cross correlation between Jinlong Machinery Electronic and Ingenic Semiconductor, you can compare the effects of market volatilities on Jinlong Machinery and Ingenic Semiconductor 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 Ingenic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinlong Machinery and Ingenic Semiconductor.
Diversification Opportunities for Jinlong Machinery and Ingenic Semiconductor
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinlong and Ingenic is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Jinlong Machinery Electronic and Ingenic Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingenic Semiconductor 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 Ingenic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingenic Semiconductor has no effect on the direction of Jinlong Machinery i.e., Jinlong Machinery and Ingenic Semiconductor go up and down completely randomly.
Pair Corralation between Jinlong Machinery and Ingenic Semiconductor
Assuming the 90 days trading horizon Jinlong Machinery Electronic is expected to under-perform the Ingenic Semiconductor. In addition to that, Jinlong Machinery is 1.08 times more volatile than Ingenic Semiconductor. It trades about -0.43 of its total potential returns per unit of risk. Ingenic Semiconductor is currently generating about -0.16 per unit of volatility. If you would invest 7,000 in Ingenic Semiconductor on October 12, 2024 and sell it today you would lose (739.00) from holding Ingenic Semiconductor or give up 10.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinlong Machinery Electronic vs. Ingenic Semiconductor
Performance |
| Timeline |
| Jinlong Machinery |
| Ingenic Semiconductor |
Jinlong Machinery and Ingenic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinlong Machinery and Ingenic Semiconductor
The main advantage of trading using opposite Jinlong Machinery and Ingenic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinlong Machinery position performs unexpectedly, Ingenic Semiconductor 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 Ingenic Semiconductor will offset losses from the drop in Ingenic Semiconductor's long position.| Jinlong Machinery vs. Financial Street Holdings | Jinlong Machinery vs. Ping An Insurance | Jinlong Machinery vs. Panda Financial Holding | Jinlong Machinery vs. GRG Banking Equipment |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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