Correlation Between Jiangsu Jinling and Luenmei Quantum
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Luenmei Quantum Co, you can compare the effects of market volatilities on Jiangsu Jinling and Luenmei Quantum 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 Jiangsu Jinling with a short position of Luenmei Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Luenmei Quantum.
Diversification Opportunities for Jiangsu Jinling and Luenmei Quantum
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Luenmei is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Luenmei Quantum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luenmei Quantum and Jiangsu Jinling 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 Jiangsu Jinling Sports are associated (or correlated) with Luenmei Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luenmei Quantum has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Luenmei Quantum go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Luenmei Quantum
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 1.83 times more return on investment than Luenmei Quantum. However, Jiangsu Jinling is 1.83 times more volatile than Luenmei Quantum Co. It trades about 0.04 of its potential returns per unit of risk. Luenmei Quantum Co is currently generating about 0.01 per unit of risk. If you would invest 1,435 in Jiangsu Jinling Sports on September 12, 2024 and sell it today you would earn a total of 20.00 from holding Jiangsu Jinling Sports or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Luenmei Quantum Co
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Luenmei Quantum |
Jiangsu Jinling and Luenmei Quantum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Luenmei Quantum
The main advantage of trading using opposite Jiangsu Jinling and Luenmei Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Luenmei Quantum 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 Luenmei Quantum will offset losses from the drop in Luenmei Quantum's long position.| Jiangsu Jinling vs. Lutian Machinery Co | Jiangsu Jinling vs. PetroChina Co Ltd | Jiangsu Jinling vs. Bank of China | Jiangsu Jinling vs. Gansu Jiu Steel |
| Luenmei Quantum vs. Zhongtong Guomai Communication | Luenmei Quantum vs. Hefei Metalforming Mach | Luenmei Quantum vs. Wintao Communications Co | Luenmei Quantum vs. ChengDu Hi Tech Development |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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