Correlation Between Jinlong Machinery and Sichuan Hebang
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By analyzing existing cross correlation between Jinlong Machinery Electronic and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Jinlong Machinery and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinlong Machinery and Sichuan Hebang.
Diversification Opportunities for Jinlong Machinery and Sichuan Hebang
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinlong and Sichuan is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jinlong Machinery Electronic and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Jinlong Machinery i.e., Jinlong Machinery and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Jinlong Machinery and Sichuan Hebang
Assuming the 90 days trading horizon Jinlong Machinery Electronic is expected to under-perform the Sichuan Hebang. In addition to that, Jinlong Machinery is 2.29 times more volatile than Sichuan Hebang Biotechnology. It trades about -0.25 of its total potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about -0.44 per unit of volatility. If you would invest 230.00 in Sichuan Hebang Biotechnology on October 17, 2024 and sell it today you would lose (35.00) from holding Sichuan Hebang Biotechnology or give up 15.22% 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. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Jinlong Machinery |
| Sichuan Hebang Biote |
Jinlong Machinery and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinlong Machinery and Sichuan Hebang
The main advantage of trading using opposite Jinlong Machinery and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinlong Machinery position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| Jinlong Machinery vs. Western Metal Materials | Jinlong Machinery vs. Caihong Display Devices | Jinlong Machinery vs. Bank of Suzhou | Jinlong Machinery vs. Ningbo Tip Rubber |
| Sichuan Hebang vs. Xiamen Jihong Package | Sichuan Hebang vs. Xiwang Foodstuffs Co | Sichuan Hebang vs. Jinlong Machinery Electronic | Sichuan Hebang vs. Anji Foodstuff Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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