Correlation Between Jiangxi Lianchuang and Dongguan Tarry
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By analyzing existing cross correlation between Jiangxi Lianchuang Opto electronic and Dongguan Tarry Electronics, you can compare the effects of market volatilities on Jiangxi Lianchuang and Dongguan Tarry 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 Dongguan Tarry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Lianchuang and Dongguan Tarry.
Diversification Opportunities for Jiangxi Lianchuang and Dongguan Tarry
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jiangxi and Dongguan is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Lianchuang Opto electr and Dongguan Tarry Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Tarry Elect 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 Dongguan Tarry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Tarry Elect has no effect on the direction of Jiangxi Lianchuang i.e., Jiangxi Lianchuang and Dongguan Tarry go up and down completely randomly.
Pair Corralation between Jiangxi Lianchuang and Dongguan Tarry
Assuming the 90 days trading horizon Jiangxi Lianchuang Opto electronic is expected to generate 0.93 times more return on investment than Dongguan Tarry. However, Jiangxi Lianchuang Opto electronic is 1.07 times less risky than Dongguan Tarry. It trades about 0.06 of its potential returns per unit of risk. Dongguan Tarry Electronics is currently generating about 0.04 per unit of risk. If you would invest 2,490 in Jiangxi Lianchuang Opto electronic on October 31, 2024 and sell it today you would earn a total of 2,318 from holding Jiangxi Lianchuang Opto electronic or generate 93.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Lianchuang Opto electr vs. Dongguan Tarry Electronics
Performance |
| Timeline |
| Jiangxi Lianchuang Opto |
| Dongguan Tarry Elect |
Jiangxi Lianchuang and Dongguan Tarry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Lianchuang and Dongguan Tarry
The main advantage of trading using opposite Jiangxi Lianchuang and Dongguan Tarry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Lianchuang position performs unexpectedly, Dongguan Tarry 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 Dongguan Tarry will offset losses from the drop in Dongguan Tarry's long position.| Jiangxi Lianchuang vs. Industrial and Commercial | Jiangxi Lianchuang vs. Agricultural Bank of | Jiangxi Lianchuang vs. China Construction Bank | Jiangxi Lianchuang vs. Bank of China |
| Dongguan Tarry vs. Industrial and Commercial | Dongguan Tarry vs. China Construction Bank | Dongguan Tarry vs. Agricultural Bank of | Dongguan Tarry vs. Bank of China |
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 Stocks Directory module to find actively traded stocks across global markets.
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