Correlation Between Jinxiandai Information and Allied Machinery
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By analyzing existing cross correlation between Jinxiandai Information Industry and Allied Machinery Co, you can compare the effects of market volatilities on Jinxiandai Information and Allied Machinery 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 Allied Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinxiandai Information and Allied Machinery.
Diversification Opportunities for Jinxiandai Information and Allied Machinery
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jinxiandai and Allied is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jinxiandai Information Industr and Allied Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Machinery 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 Allied Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Machinery has no effect on the direction of Jinxiandai Information i.e., Jinxiandai Information and Allied Machinery go up and down completely randomly.
Pair Corralation between Jinxiandai Information and Allied Machinery
Assuming the 90 days trading horizon Jinxiandai Information Industry is expected to generate 1.42 times more return on investment than Allied Machinery. However, Jinxiandai Information is 1.42 times more volatile than Allied Machinery Co. It trades about 0.01 of its potential returns per unit of risk. Allied Machinery Co is currently generating about -0.01 per unit of risk. If you would invest 845.00 in Jinxiandai Information Industry on October 11, 2024 and sell it today you would lose (80.00) from holding Jinxiandai Information Industry or give up 9.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinxiandai Information Industr vs. Allied Machinery Co
Performance |
| Timeline |
| Jinxiandai Information |
| Allied Machinery |
Jinxiandai Information and Allied Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinxiandai Information and Allied Machinery
The main advantage of trading using opposite Jinxiandai Information and Allied Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinxiandai Information position performs unexpectedly, Allied Machinery 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 Allied Machinery will offset losses from the drop in Allied Machinery's long position.The idea behind Jinxiandai Information Industry and Allied Machinery Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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