Correlation Between Jiangxi Lianchuang and Jiangyin Jianghua
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By analyzing existing cross correlation between Jiangxi Lianchuang Opto electronic and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Jiangxi Lianchuang and Jiangyin Jianghua 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 Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Lianchuang and Jiangyin Jianghua.
Diversification Opportunities for Jiangxi Lianchuang and Jiangyin Jianghua
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangxi and Jiangyin is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Lianchuang Opto electr and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua 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 Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of Jiangxi Lianchuang i.e., Jiangxi Lianchuang and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Jiangxi Lianchuang and Jiangyin Jianghua
Assuming the 90 days trading horizon Jiangxi Lianchuang Opto electronic is expected to generate 1.09 times more return on investment than Jiangyin Jianghua. However, Jiangxi Lianchuang is 1.09 times more volatile than Jiangyin Jianghua Microelectronics. It trades about 0.06 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about -0.1 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. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Jiangxi Lianchuang Opto |
| Jiangyin Jianghua |
Jiangxi Lianchuang and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Lianchuang and Jiangyin Jianghua
The main advantage of trading using opposite Jiangxi Lianchuang and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Lianchuang position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua'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 |
| Jiangyin Jianghua vs. Shaanxi Construction Machinery | Jiangyin Jianghua vs. Allied Machinery Co | Jiangyin Jianghua vs. Huasi Agricultural Development | Jiangyin Jianghua vs. Jiangsu Yanghe Brewery |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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