Correlation Between Jinxiandai Information and Allwin Telecommunicatio
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By analyzing existing cross correlation between Jinxiandai Information Industry and Allwin Telecommunication Co, you can compare the effects of market volatilities on Jinxiandai Information and Allwin Telecommunicatio 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 Jinxiandai Information with a short position of Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinxiandai Information and Allwin Telecommunicatio.
Diversification Opportunities for Jinxiandai Information and Allwin Telecommunicatio
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinxiandai and Allwin is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jinxiandai Information Industr and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio and Jinxiandai 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 Jinxiandai Information Industry are associated (or correlated) with Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Jinxiandai Information i.e., Jinxiandai Information and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Jinxiandai Information and Allwin Telecommunicatio
Assuming the 90 days trading horizon Jinxiandai Information Industry is expected to generate 1.53 times more return on investment than Allwin Telecommunicatio. However, Jinxiandai Information is 1.53 times more volatile than Allwin Telecommunication Co. It trades about 0.1 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about -0.12 per unit of risk. If you would invest 848.00 in Jinxiandai Information Industry on October 28, 2024 and sell it today you would earn a total of 70.00 from holding Jinxiandai Information Industry or generate 8.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinxiandai Information Industr vs. Allwin Telecommunication Co
Performance |
| Timeline |
| Jinxiandai Information |
| Allwin Telecommunicatio |
Jinxiandai Information and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinxiandai Information and Allwin Telecommunicatio
The main advantage of trading using opposite Jinxiandai Information and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinxiandai Information position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Jinxiandai Information vs. Bank of China | Jinxiandai Information vs. Kweichow Moutai Co | Jinxiandai Information vs. PetroChina Co Ltd | Jinxiandai Information vs. Bank of Communications |
| Allwin Telecommunicatio vs. Bus Online Co | Allwin Telecommunicatio vs. Holitech Technology Co | Allwin Telecommunicatio vs. Gome Telecom Equipment | Allwin Telecommunicatio vs. Cultural Investment Holdings |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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