Correlation Between Zhonghang Electronic and Jinlong Machinery
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By analyzing existing cross correlation between Zhonghang Electronic Measuring and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Zhonghang Electronic and Jinlong Machinery 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 Zhonghang Electronic with a short position of Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhonghang Electronic and Jinlong Machinery.
Diversification Opportunities for Zhonghang Electronic and Jinlong Machinery
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhonghang and Jinlong is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Zhonghang Electronic Measuring and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery and Zhonghang Electronic 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 Zhonghang Electronic Measuring are associated (or correlated) with Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Zhonghang Electronic i.e., Zhonghang Electronic and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Zhonghang Electronic and Jinlong Machinery
Assuming the 90 days trading horizon Zhonghang Electronic Measuring is expected to generate 1.33 times more return on investment than Jinlong Machinery. However, Zhonghang Electronic is 1.33 times more volatile than Jinlong Machinery Electronic. It trades about 0.01 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about -0.43 per unit of risk. If you would invest 6,871 in Zhonghang Electronic Measuring on October 12, 2024 and sell it today you would lose (65.00) from holding Zhonghang Electronic Measuring or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhonghang Electronic Measuring vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Zhonghang Electronic |
| Jinlong Machinery |
Zhonghang Electronic and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhonghang Electronic and Jinlong Machinery
The main advantage of trading using opposite Zhonghang Electronic and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhonghang Electronic position performs unexpectedly, Jinlong Machinery 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery's long position.| Zhonghang Electronic vs. Jiaozuo Wanfang Aluminum | Zhonghang Electronic vs. Zijin Mining Group | Zhonghang Electronic vs. Jiangsu Yanghe Brewery | Zhonghang Electronic vs. Chongqing Shunbo Aluminum |
| Jinlong Machinery vs. Financial Street Holdings | Jinlong Machinery vs. Ping An Insurance | Jinlong Machinery vs. Panda Financial Holding | Jinlong Machinery vs. GRG Banking Equipment |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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