Correlation Between Jinlong Machinery and Jiangsu Xinri
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By analyzing existing cross correlation between Jinlong Machinery Electronic and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Jinlong Machinery and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinlong Machinery and Jiangsu Xinri.
Diversification Opportunities for Jinlong Machinery and Jiangsu Xinri
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinlong and Jiangsu is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jinlong Machinery Electronic and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Jinlong Machinery i.e., Jinlong Machinery and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Jinlong Machinery and Jiangsu Xinri
Assuming the 90 days trading horizon Jinlong Machinery Electronic is expected to under-perform the Jiangsu Xinri. In addition to that, Jinlong Machinery is 1.46 times more volatile than Jiangsu Xinri E Vehicle. It trades about -0.17 of its total potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about -0.08 per unit of volatility. If you would invest 1,105 in Jiangsu Xinri E Vehicle on October 30, 2024 and sell it today you would lose (88.00) from holding Jiangsu Xinri E Vehicle or give up 7.96% 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. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Jinlong Machinery |
| Jiangsu Xinri E |
Jinlong Machinery and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinlong Machinery and Jiangsu Xinri
The main advantage of trading using opposite Jinlong Machinery and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinlong Machinery position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri'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 |
| Jiangsu Xinri vs. Xiangyang Automobile Bearing | Jiangsu Xinri vs. Ningbo Fangzheng Automobile | Jiangsu Xinri vs. Guangzhou Seagull Kitchen | Jiangsu Xinri vs. Guangzhou Automobile Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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