Correlation Between Jinxiandai Information and Weihai Honglin
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By analyzing existing cross correlation between Jinxiandai Information Industry and Weihai Honglin Electronic, you can compare the effects of market volatilities on Jinxiandai Information and Weihai Honglin 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 Weihai Honglin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinxiandai Information and Weihai Honglin.
Diversification Opportunities for Jinxiandai Information and Weihai Honglin
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jinxiandai and Weihai is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jinxiandai Information Industr and Weihai Honglin Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Honglin Electronic 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 Weihai Honglin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Honglin Electronic has no effect on the direction of Jinxiandai Information i.e., Jinxiandai Information and Weihai Honglin go up and down completely randomly.
Pair Corralation between Jinxiandai Information and Weihai Honglin
Assuming the 90 days trading horizon Jinxiandai Information Industry is expected to generate 1.29 times more return on investment than Weihai Honglin. However, Jinxiandai Information is 1.29 times more volatile than Weihai Honglin Electronic. It trades about 0.01 of its potential returns per unit of risk. Weihai Honglin Electronic is currently generating about -0.02 per unit of risk. If you would invest 862.00 in Jinxiandai Information Industry on October 16, 2024 and sell it today you would lose (105.00) from holding Jinxiandai Information Industry or give up 12.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 92.9% |
| Values | Daily Returns |
Jinxiandai Information Industr vs. Weihai Honglin Electronic
Performance |
| Timeline |
| Jinxiandai Information |
| Weihai Honglin Electronic |
Jinxiandai Information and Weihai Honglin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinxiandai Information and Weihai Honglin
The main advantage of trading using opposite Jinxiandai Information and Weihai Honglin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinxiandai Information position performs unexpectedly, Weihai Honglin 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 Weihai Honglin will offset losses from the drop in Weihai Honglin's long position.| Jinxiandai Information vs. China Life Insurance | Jinxiandai Information vs. Cinda Securities Co | Jinxiandai Information vs. Piotech Inc A | Jinxiandai Information vs. Dongxing Sec Co |
| Weihai Honglin vs. Eastern Communications Co | Weihai Honglin vs. Strait Innovation Internet | Weihai Honglin vs. Jinhui Liquor Co | Weihai Honglin vs. Fujian Newland Computer |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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