Correlation Between Jinlong Machinery and Beijing Sanyuan
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By analyzing existing cross correlation between Jinlong Machinery Electronic and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Jinlong Machinery and Beijing Sanyuan 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 Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinlong Machinery and Beijing Sanyuan.
Diversification Opportunities for Jinlong Machinery and Beijing Sanyuan
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinlong and Beijing is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Jinlong Machinery Electronic and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods 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 Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of Jinlong Machinery i.e., Jinlong Machinery and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Jinlong Machinery and Beijing Sanyuan
Assuming the 90 days trading horizon Jinlong Machinery Electronic is expected to generate 1.39 times more return on investment than Beijing Sanyuan. However, Jinlong Machinery is 1.39 times more volatile than Beijing Sanyuan Foods. It trades about -0.1 of its potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about -0.21 per unit of risk. If you would invest 473.00 in Jinlong Machinery Electronic on October 26, 2024 and sell it today you would lose (34.00) from holding Jinlong Machinery Electronic or give up 7.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jinlong Machinery Electronic vs. Beijing Sanyuan Foods
Performance |
| Timeline |
| Jinlong Machinery |
| Beijing Sanyuan Foods |
Jinlong Machinery and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinlong Machinery and Beijing Sanyuan
The main advantage of trading using opposite Jinlong Machinery and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinlong Machinery position performs unexpectedly, Beijing Sanyuan 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 Beijing Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| Jinlong Machinery vs. China State Construction | Jinlong Machinery vs. Poly Real Estate | Jinlong Machinery vs. China Vanke Co | Jinlong Machinery vs. China Merchants Shekou |
| Beijing Sanyuan vs. Goodwill E Health | Beijing Sanyuan vs. Guangxi Wuzhou Communications | Beijing Sanyuan vs. Zotye Automobile Co | Beijing Sanyuan vs. Wuhan Yangtze Communication |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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