Correlation Between Jinxiandai Information and Wenzhou Hongfeng
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By analyzing existing cross correlation between Jinxiandai Information Industry and Wenzhou Hongfeng Electrical, you can compare the effects of market volatilities on Jinxiandai Information and Wenzhou Hongfeng 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 Wenzhou Hongfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinxiandai Information and Wenzhou Hongfeng.
Diversification Opportunities for Jinxiandai Information and Wenzhou Hongfeng
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinxiandai and Wenzhou is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jinxiandai Information Industr and Wenzhou Hongfeng Electrical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wenzhou Hongfeng Ele 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 Wenzhou Hongfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wenzhou Hongfeng Ele has no effect on the direction of Jinxiandai Information i.e., Jinxiandai Information and Wenzhou Hongfeng go up and down completely randomly.
Pair Corralation between Jinxiandai Information and Wenzhou Hongfeng
Assuming the 90 days trading horizon Jinxiandai Information Industry is expected to under-perform the Wenzhou Hongfeng. In addition to that, Jinxiandai Information is 1.3 times more volatile than Wenzhou Hongfeng Electrical. It trades about -0.23 of its total potential returns per unit of risk. Wenzhou Hongfeng Electrical is currently generating about -0.15 per unit of volatility. If you would invest 617.00 in Wenzhou Hongfeng Electrical on October 21, 2024 and sell it today you would lose (70.00) from holding Wenzhou Hongfeng Electrical or give up 11.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinxiandai Information Industr vs. Wenzhou Hongfeng Electrical
Performance |
| Timeline |
| Jinxiandai Information |
| Wenzhou Hongfeng Ele |
Jinxiandai Information and Wenzhou Hongfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinxiandai Information and Wenzhou Hongfeng
The main advantage of trading using opposite Jinxiandai Information and Wenzhou Hongfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinxiandai Information position performs unexpectedly, Wenzhou Hongfeng 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 Wenzhou Hongfeng will offset losses from the drop in Wenzhou Hongfeng's long position.| Jinxiandai Information vs. Dhc Software Co | Jinxiandai Information vs. Harbin Air Conditioning | Jinxiandai Information vs. Hangzhou Pinming Software | Jinxiandai Information vs. Bingo Software Co |
| Wenzhou Hongfeng vs. Jinxiandai Information Industry | Wenzhou Hongfeng vs. ButOne Information Corp | Wenzhou Hongfeng vs. CSSC Offshore Marine | Wenzhou Hongfeng vs. Luyin Investment Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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