Correlation Between Longmaster Information and Jiangxi Lianchuang
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By analyzing existing cross correlation between Longmaster Information Tech and Jiangxi Lianchuang Opto electronic, you can compare the effects of market volatilities on Longmaster Information and Jiangxi Lianchuang 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 Longmaster Information with a short position of Jiangxi Lianchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longmaster Information and Jiangxi Lianchuang.
Diversification Opportunities for Longmaster Information and Jiangxi Lianchuang
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Longmaster and Jiangxi is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Longmaster Information Tech and Jiangxi Lianchuang Opto electr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Lianchuang Opto and Longmaster Information 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 Longmaster Information Tech are associated (or correlated) with Jiangxi Lianchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Lianchuang Opto has no effect on the direction of Longmaster Information i.e., Longmaster Information and Jiangxi Lianchuang go up and down completely randomly.
Pair Corralation between Longmaster Information and Jiangxi Lianchuang
Assuming the 90 days trading horizon Longmaster Information is expected to generate 1.23 times less return on investment than Jiangxi Lianchuang. In addition to that, Longmaster Information is 1.42 times more volatile than Jiangxi Lianchuang Opto electronic. It trades about 0.03 of its total potential returns per unit of risk. Jiangxi Lianchuang Opto electronic is currently generating about 0.05 per unit of volatility. If you would invest 2,787 in Jiangxi Lianchuang Opto electronic on October 31, 2024 and sell it today you would earn a total of 2,021 from holding Jiangxi Lianchuang Opto electronic or generate 72.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longmaster Information Tech vs. Jiangxi Lianchuang Opto electr
Performance |
| Timeline |
| Longmaster Information |
| Jiangxi Lianchuang Opto |
Longmaster Information and Jiangxi Lianchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longmaster Information and Jiangxi Lianchuang
The main advantage of trading using opposite Longmaster Information and Jiangxi Lianchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longmaster Information position performs unexpectedly, Jiangxi Lianchuang 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 Jiangxi Lianchuang will offset losses from the drop in Jiangxi Lianchuang's long position.| Longmaster Information vs. Pengxin International Mining | Longmaster Information vs. Do Fluoride Chemicals Co | Longmaster Information vs. Guangdong Silvere Sci | Longmaster Information vs. Zijin Mining Group |
| Jiangxi Lianchuang vs. Industrial and Commercial | Jiangxi Lianchuang vs. Agricultural Bank of | Jiangxi Lianchuang vs. China Construction Bank | Jiangxi Lianchuang vs. Bank of China |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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