Correlation Between Jiangxi Lianchuang and Chengdu Xinzhu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangxi Lianchuang Opto electronic and Chengdu Xinzhu RoadBridge, you can compare the effects of market volatilities on Jiangxi Lianchuang and Chengdu Xinzhu 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 Jiangxi Lianchuang with a short position of Chengdu Xinzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Lianchuang and Chengdu Xinzhu.
Diversification Opportunities for Jiangxi Lianchuang and Chengdu Xinzhu
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangxi and Chengdu is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Lianchuang Opto electr and Chengdu Xinzhu RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xinzhu RoadBridge and Jiangxi Lianchuang 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 Jiangxi Lianchuang Opto electronic are associated (or correlated) with Chengdu Xinzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xinzhu RoadBridge has no effect on the direction of Jiangxi Lianchuang i.e., Jiangxi Lianchuang and Chengdu Xinzhu go up and down completely randomly.
Pair Corralation between Jiangxi Lianchuang and Chengdu Xinzhu
Assuming the 90 days trading horizon Jiangxi Lianchuang Opto electronic is expected to generate 0.63 times more return on investment than Chengdu Xinzhu. However, Jiangxi Lianchuang Opto electronic is 1.58 times less risky than Chengdu Xinzhu. It trades about 0.06 of its potential returns per unit of risk. Chengdu Xinzhu RoadBridge is currently generating about 0.0 per unit of risk. If you would invest 4,445 in Jiangxi Lianchuang Opto electronic on October 19, 2024 and sell it today you would earn a total of 149.00 from holding Jiangxi Lianchuang Opto electronic or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Lianchuang Opto electr vs. Chengdu Xinzhu RoadBridge
Performance |
| Timeline |
| Jiangxi Lianchuang Opto |
| Chengdu Xinzhu RoadBridge |
Jiangxi Lianchuang and Chengdu Xinzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Lianchuang and Chengdu Xinzhu
The main advantage of trading using opposite Jiangxi Lianchuang and Chengdu Xinzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Lianchuang position performs unexpectedly, Chengdu Xinzhu 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 Chengdu Xinzhu will offset losses from the drop in Chengdu Xinzhu's long position.| Jiangxi Lianchuang vs. Haima Automobile Group | Jiangxi Lianchuang vs. Hangzhou Gisway Information | Jiangxi Lianchuang vs. Anhui Jianghuai Automobile | Jiangxi Lianchuang vs. Longmaster Information Tech |
| Chengdu Xinzhu vs. Songz Automobile Air | Chengdu Xinzhu vs. Changchun Engley Automobile | Chengdu Xinzhu vs. Iat Automobile Technology | Chengdu Xinzhu vs. Chongqing Changan Automobile |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |