Correlation Between Jiangsu Jinling and Lutian Machinery
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Lutian Machinery Co, you can compare the effects of market volatilities on Jiangsu Jinling and Lutian 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 Jiangsu Jinling with a short position of Lutian Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Lutian Machinery.
Diversification Opportunities for Jiangsu Jinling and Lutian Machinery
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Lutian is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Lutian Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lutian Machinery 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 Lutian Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lutian Machinery has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Lutian Machinery go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Lutian Machinery
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to under-perform the Lutian Machinery. In addition to that, Jiangsu Jinling is 1.48 times more volatile than Lutian Machinery Co. It trades about -0.02 of its total potential returns per unit of risk. Lutian Machinery Co is currently generating about 0.0 per unit of volatility. If you would invest 1,699 in Lutian Machinery Co on September 12, 2024 and sell it today you would lose (130.00) from holding Lutian Machinery Co or give up 7.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Lutian Machinery Co
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Lutian Machinery |
Jiangsu Jinling and Lutian Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Lutian Machinery
The main advantage of trading using opposite Jiangsu Jinling and Lutian Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Lutian 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 Lutian Machinery will offset losses from the drop in Lutian Machinery'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 |
| Lutian Machinery vs. Agricultural Bank of | Lutian Machinery vs. Industrial and Commercial | Lutian Machinery vs. Bank of China | Lutian Machinery vs. PetroChina Co Ltd |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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