Correlation Between Hunan Tyen and Jiangsu Xinri
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By analyzing existing cross correlation between Hunan Tyen Machinery and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Hunan Tyen and Jiangsu Xinri 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 Hunan Tyen with a short position of Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Tyen and Jiangsu Xinri.
Diversification Opportunities for Hunan Tyen and Jiangsu Xinri
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Jiangsu is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Tyen Machinery and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E and Hunan Tyen 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 Hunan Tyen Machinery are associated (or correlated) with Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Hunan Tyen i.e., Hunan Tyen and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Hunan Tyen and Jiangsu Xinri
Assuming the 90 days trading horizon Hunan Tyen Machinery is expected to generate 1.14 times more return on investment than Jiangsu Xinri. However, Hunan Tyen is 1.14 times more volatile than Jiangsu Xinri E Vehicle. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about -0.03 per unit of risk. If you would invest 436.00 in Hunan Tyen Machinery on August 31, 2024 and sell it today you would earn a total of 78.00 from holding Hunan Tyen Machinery or generate 17.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Tyen Machinery vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Hunan Tyen Machinery |
| Jiangsu Xinri E |
Hunan Tyen and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Tyen and Jiangsu Xinri
The main advantage of trading using opposite Hunan Tyen and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Tyen position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Hunan Tyen vs. China State Construction | Hunan Tyen vs. China Merchants Shekou | Hunan Tyen vs. Huafa Industrial Co | Hunan Tyen vs. China International Capital |
| Jiangsu Xinri vs. China State Construction | Jiangsu Xinri vs. China Merchants Shekou | Jiangsu Xinri vs. Huafa Industrial Co | Jiangsu Xinri vs. China International Capital |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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