Correlation Between Jiangxi Lianchuang and Jinlong Machinery
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By analyzing existing cross correlation between Jiangxi Lianchuang Opto electronic and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Jiangxi Lianchuang and Jinlong 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 Jiangxi Lianchuang with a short position of Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Lianchuang and Jinlong Machinery.
Diversification Opportunities for Jiangxi Lianchuang and Jinlong Machinery
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangxi and Jinlong is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Lianchuang Opto electr and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery 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 Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Jiangxi Lianchuang i.e., Jiangxi Lianchuang and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Jiangxi Lianchuang and Jinlong Machinery
Assuming the 90 days trading horizon Jiangxi Lianchuang Opto electronic is expected to generate 0.83 times more return on investment than Jinlong Machinery. However, Jiangxi Lianchuang Opto electronic is 1.2 times less risky than Jinlong Machinery. It trades about 0.06 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about -0.2 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Lianchuang Opto electr vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Jiangxi Lianchuang Opto |
| Jinlong Machinery |
Jiangxi Lianchuang and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Lianchuang and Jinlong Machinery
The main advantage of trading using opposite Jiangxi Lianchuang and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Lianchuang position performs unexpectedly, Jinlong 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery'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 |
| Jinlong Machinery vs. Hefei Metalforming Mach | Jinlong Machinery vs. Citic Guoan Wine | Jinlong Machinery vs. Guangzhou Restaurants Group | Jinlong Machinery vs. Shenyang Huitian Thermal |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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