Correlation Between Jinlong Machinery and Jiujiang Shanshui
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By analyzing existing cross correlation between Jinlong Machinery Electronic and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Jinlong Machinery and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinlong Machinery and Jiujiang Shanshui.
Diversification Opportunities for Jinlong Machinery and Jiujiang Shanshui
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinlong and Jiujiang is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jinlong Machinery Electronic and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Jinlong Machinery i.e., Jinlong Machinery and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Jinlong Machinery and Jiujiang Shanshui
Assuming the 90 days trading horizon Jinlong Machinery Electronic is expected to under-perform the Jiujiang Shanshui. In addition to that, Jinlong Machinery is 1.81 times more volatile than Jiujiang Shanshui Technology. It trades about -0.43 of its total potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about -0.29 per unit of volatility. If you would invest 1,664 in Jiujiang Shanshui Technology on October 12, 2024 and sell it today you would lose (181.00) from holding Jiujiang Shanshui Technology or give up 10.88% 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. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Jinlong Machinery |
| Jiujiang Shanshui |
Jinlong Machinery and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinlong Machinery and Jiujiang Shanshui
The main advantage of trading using opposite Jinlong Machinery and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinlong Machinery position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui'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 |
| Jiujiang Shanshui vs. Jinlong Machinery Electronic | Jiujiang Shanshui vs. YiDong Electronics Technology | Jiujiang Shanshui vs. Fuzhou Rockchip Electronics | Jiujiang Shanshui vs. Tianjin Silvery Dragon |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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