Correlation Between Jinlong Machinery and Xinke Material
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By analyzing existing cross correlation between Jinlong Machinery Electronic and Xinke Material, you can compare the effects of market volatilities on Jinlong Machinery and Xinke Material 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 Xinke Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinlong Machinery and Xinke Material.
Diversification Opportunities for Jinlong Machinery and Xinke Material
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jinlong and Xinke is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jinlong Machinery Electronic and Xinke Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinke Material 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 Xinke Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinke Material has no effect on the direction of Jinlong Machinery i.e., Jinlong Machinery and Xinke Material go up and down completely randomly.
Pair Corralation between Jinlong Machinery and Xinke Material
Assuming the 90 days trading horizon Jinlong Machinery is expected to generate 3.09 times less return on investment than Xinke Material. In addition to that, Jinlong Machinery is 1.32 times more volatile than Xinke Material. It trades about 0.01 of its total potential returns per unit of risk. Xinke Material is currently generating about 0.04 per unit of volatility. If you would invest 270.00 in Xinke Material on October 11, 2024 and sell it today you would earn a total of 112.00 from holding Xinke Material or generate 41.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinlong Machinery Electronic vs. Xinke Material
Performance |
| Timeline |
| Jinlong Machinery |
| Xinke Material |
Jinlong Machinery and Xinke Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinlong Machinery and Xinke Material
The main advantage of trading using opposite Jinlong Machinery and Xinke Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinlong Machinery position performs unexpectedly, Xinke Material 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 Xinke Material will offset losses from the drop in Xinke Material'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 |
| Xinke Material vs. Semiconductor Manufacturing Electronics | Xinke Material vs. Jiujiang Shanshui Technology | Xinke Material vs. Jinlong Machinery Electronic | Xinke Material vs. Success Electronics |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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