Correlation Between Tianjin Ruixin and Jiangxi JDL
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By analyzing existing cross correlation between Tianjin Ruixin Technology and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Tianjin Ruixin and Jiangxi JDL 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 Tianjin Ruixin with a short position of Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Ruixin and Jiangxi JDL.
Diversification Opportunities for Tianjin Ruixin and Jiangxi JDL
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tianjin and Jiangxi is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Ruixin Technology and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental and Tianjin Ruixin 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 Tianjin Ruixin Technology are associated (or correlated) with Jiangxi JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of Tianjin Ruixin i.e., Tianjin Ruixin and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Tianjin Ruixin and Jiangxi JDL
Assuming the 90 days trading horizon Tianjin Ruixin Technology is expected to under-perform the Jiangxi JDL. In addition to that, Tianjin Ruixin is 2.81 times more volatile than Jiangxi JDL Environmental. It trades about -0.07 of its total potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about -0.16 per unit of volatility. If you would invest 1,128 in Jiangxi JDL Environmental on October 24, 2024 and sell it today you would lose (48.00) from holding Jiangxi JDL Environmental or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Ruixin Technology vs. Jiangxi JDL Environmental
Performance |
| Timeline |
| Tianjin Ruixin Technology |
| Jiangxi JDL Environmental |
Tianjin Ruixin and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Ruixin and Jiangxi JDL
The main advantage of trading using opposite Tianjin Ruixin and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Ruixin position performs unexpectedly, Jiangxi JDL 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 JDL will offset losses from the drop in Jiangxi JDL's long position.| Tianjin Ruixin vs. Shanghai Newtouch Software | Tianjin Ruixin vs. Linewell Software Co | Tianjin Ruixin vs. Juneyao Airlines | Tianjin Ruixin vs. Anhui Transport Consulting |
| Jiangxi JDL vs. Dhc Software Co | Jiangxi JDL vs. Guangdong Ellington Electronics | Jiangxi JDL vs. Tianjin Ruixin Technology | Jiangxi JDL vs. Epoxy Base Electronic |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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