Correlation Between Dongguan Tarry and Jiangsu Xinri
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By analyzing existing cross correlation between Dongguan Tarry Electronics and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Dongguan Tarry and Jiangsu Xinri 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 Dongguan Tarry with a short position of Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Tarry and Jiangsu Xinri.
Diversification Opportunities for Dongguan Tarry and Jiangsu Xinri
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dongguan and Jiangsu is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Tarry Electronics and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E and Dongguan Tarry 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 Dongguan Tarry Electronics are associated (or correlated) with Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Dongguan Tarry i.e., Dongguan Tarry and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Dongguan Tarry and Jiangsu Xinri
Assuming the 90 days trading horizon Dongguan Tarry Electronics is expected to generate 1.73 times more return on investment than Jiangsu Xinri. However, Dongguan Tarry is 1.73 times more volatile than Jiangsu Xinri E Vehicle. It trades about 0.11 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about -0.08 per unit of risk. If you would invest 5,955 in Dongguan Tarry Electronics on October 30, 2024 and sell it today you would earn a total of 948.00 from holding Dongguan Tarry Electronics or generate 15.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Tarry Electronics vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Dongguan Tarry Elect |
| Jiangsu Xinri E |
Dongguan Tarry and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Tarry and Jiangsu Xinri
The main advantage of trading using opposite Dongguan Tarry and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Tarry position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Dongguan Tarry vs. Anhui Jianghuai Automobile | Dongguan Tarry vs. Shanghai Jinfeng Wine | Dongguan Tarry vs. Tonghua Grape Wine | Dongguan Tarry vs. Queclink Wireless Solutions |
| Jiangsu Xinri vs. Xiangyang Automobile Bearing | Jiangsu Xinri vs. Ningbo Fangzheng Automobile | Jiangsu Xinri vs. Guangzhou Seagull Kitchen | Jiangsu Xinri vs. Guangzhou Automobile 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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