Correlation Between Jiangsu Jinling and Longjian Road
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Jinling Sports and Longjian Road Bridge, you can compare the effects of market volatilities on Jiangsu Jinling and Longjian Road 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 Longjian Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Longjian Road.
Diversification Opportunities for Jiangsu Jinling and Longjian Road
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Longjian is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Longjian Road Bridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longjian Road Bridge 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 Longjian Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longjian Road Bridge has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Longjian Road go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Longjian Road
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to under-perform the Longjian Road. In addition to that, Jiangsu Jinling is 1.13 times more volatile than Longjian Road Bridge. It trades about -0.21 of its total potential returns per unit of risk. Longjian Road Bridge is currently generating about -0.18 per unit of volatility. If you would invest 434.00 in Longjian Road Bridge on October 12, 2024 and sell it today you would lose (65.00) from holding Longjian Road Bridge or give up 14.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Longjian Road Bridge
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Longjian Road Bridge |
Jiangsu Jinling and Longjian Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Longjian Road
The main advantage of trading using opposite Jiangsu Jinling and Longjian Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Longjian Road 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 Longjian Road will offset losses from the drop in Longjian Road's long position.| Jiangsu Jinling vs. Shantou Wanshun Package | Jiangsu Jinling vs. Ping An Insurance | Jiangsu Jinling vs. Xiwang Foodstuffs Co | Jiangsu Jinling vs. Sinomach Automobile Co |
| Longjian Road vs. Shenzhen Topway Video | Longjian Road vs. Jiangsu Jinling Sports | Longjian Road vs. Lutian Machinery Co | Longjian Road vs. Shuhua Sports 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |