Correlation Between Jinxiandai Information and Dalian Thermal
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By analyzing existing cross correlation between Jinxiandai Information Industry and Dalian Thermal Power, you can compare the effects of market volatilities on Jinxiandai Information and Dalian Thermal 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 Dalian Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinxiandai Information and Dalian Thermal.
Diversification Opportunities for Jinxiandai Information and Dalian Thermal
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinxiandai and Dalian is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jinxiandai Information Industr and Dalian Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Thermal Power 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 Dalian Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Thermal Power has no effect on the direction of Jinxiandai Information i.e., Jinxiandai Information and Dalian Thermal go up and down completely randomly.
Pair Corralation between Jinxiandai Information and Dalian Thermal
Assuming the 90 days trading horizon Jinxiandai Information Industry is expected to generate 1.57 times more return on investment than Dalian Thermal. However, Jinxiandai Information is 1.57 times more volatile than Dalian Thermal Power. It trades about 0.12 of its potential returns per unit of risk. Dalian Thermal Power is currently generating about -0.21 per unit of risk. If you would invest 833.00 in Jinxiandai Information Industry on October 27, 2024 and sell it today you would earn a total of 85.00 from holding Jinxiandai Information Industry or generate 10.2% 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. Dalian Thermal Power
Performance |
| Timeline |
| Jinxiandai Information |
| Dalian Thermal Power |
Jinxiandai Information and Dalian Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinxiandai Information and Dalian Thermal
The main advantage of trading using opposite Jinxiandai Information and Dalian Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinxiandai Information position performs unexpectedly, Dalian Thermal 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 Dalian Thermal will offset losses from the drop in Dalian Thermal's long position.| Jinxiandai Information vs. Allwin Telecommunication Co | Jinxiandai Information vs. Qingdao Foods Co | Jinxiandai Information vs. Youyou Foods Co | Jinxiandai Information vs. HaiXin Foods Co |
| Dalian Thermal vs. GRG Banking Equipment | Dalian Thermal vs. Will Semiconductor Co | Dalian Thermal vs. Shenwu Energy Saving | Dalian Thermal vs. Union Semiconductor Co |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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