Correlation Between Jinlong Machinery and Wuhan Yangtze
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinlong Machinery Electronic and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Jinlong Machinery and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinlong Machinery and Wuhan Yangtze.
Diversification Opportunities for Jinlong Machinery and Wuhan Yangtze
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jinlong and Wuhan is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Jinlong Machinery Electronic and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Jinlong Machinery i.e., Jinlong Machinery and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Jinlong Machinery and Wuhan Yangtze
Assuming the 90 days trading horizon Jinlong Machinery Electronic is expected to under-perform the Wuhan Yangtze. But the stock apears to be less risky and, when comparing its historical volatility, Jinlong Machinery Electronic is 1.19 times less risky than Wuhan Yangtze. The stock trades about -0.13 of its potential returns per unit of risk. The Wuhan Yangtze Communication is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 2,391 in Wuhan Yangtze Communication on October 30, 2024 and sell it today you would lose (98.00) from holding Wuhan Yangtze Communication or give up 4.1% 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. Wuhan Yangtze Communication
Performance |
| Timeline |
| Jinlong Machinery |
| Wuhan Yangtze Commun |
Jinlong Machinery and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinlong Machinery and Wuhan Yangtze
The main advantage of trading using opposite Jinlong Machinery and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinlong Machinery position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze's long position.| Jinlong Machinery vs. Jiangsu Yanghe Brewery | Jinlong Machinery vs. Chison Medical Technologies | Jinlong Machinery vs. Tinavi Medical Technologies | Jinlong Machinery vs. Zhongzhu Medical Holdings |
| Wuhan Yangtze vs. Bus Online Co | Wuhan Yangtze vs. Holitech Technology Co | Wuhan Yangtze vs. Gome Telecom Equipment | Wuhan Yangtze vs. Cultural Investment Holdings |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |