Correlation Between Xinjiang Tianrun and Jinlong Machinery
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Xinjiang Tianrun 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 Xinjiang Tianrun with a short position of Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Jinlong Machinery.
Diversification Opportunities for Xinjiang Tianrun and Jinlong Machinery
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Jinlong is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery and Xinjiang Tianrun 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 Xinjiang Tianrun Dairy 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 Xinjiang Tianrun i.e., Xinjiang Tianrun and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Jinlong Machinery
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to under-perform the Jinlong Machinery. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Tianrun Dairy is 1.91 times less risky than Jinlong Machinery. The stock trades about 0.0 of its potential returns per unit of risk. The Jinlong Machinery Electronic is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 323.00 in Jinlong Machinery Electronic on October 13, 2024 and sell it today you would earn a total of 92.00 from holding Jinlong Machinery Electronic or generate 28.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Jinlong Machinery |
Xinjiang Tianrun and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Jinlong Machinery
The main advantage of trading using opposite Xinjiang Tianrun and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun 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.| Xinjiang Tianrun vs. Guangdong Jingyi Metal | Xinjiang Tianrun vs. Lonkey Industrial Co | Xinjiang Tianrun vs. Pengxin International Mining | Xinjiang Tianrun vs. Easyhome New Retail |
| Jinlong Machinery vs. Anhui Transport Consulting | Jinlong Machinery vs. Heilongjiang Transport Development | Jinlong Machinery vs. Xiangpiaopiao Food Co | Jinlong Machinery vs. Xinjiang Tianrun Dairy |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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