Correlation Between Jiangsu Yueda and Chengdu Xingrong
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Chengdu Xingrong Investment, you can compare the effects of market volatilities on Jiangsu Yueda and Chengdu Xingrong 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 Jiangsu Yueda with a short position of Chengdu Xingrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Chengdu Xingrong.
Diversification Opportunities for Jiangsu Yueda and Chengdu Xingrong
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Chengdu is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Chengdu Xingrong Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xingrong Inv and Jiangsu Yueda 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 Jiangsu Yueda Investment are associated (or correlated) with Chengdu Xingrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xingrong Inv has no effect on the direction of Jiangsu Yueda i.e., Jiangsu Yueda and Chengdu Xingrong go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Chengdu Xingrong
Assuming the 90 days trading horizon Jiangsu Yueda Investment is expected to generate 1.22 times more return on investment than Chengdu Xingrong. However, Jiangsu Yueda is 1.22 times more volatile than Chengdu Xingrong Investment. It trades about 0.04 of its potential returns per unit of risk. Chengdu Xingrong Investment is currently generating about -0.18 per unit of risk. If you would invest 461.00 in Jiangsu Yueda Investment on August 29, 2024 and sell it today you would earn a total of 7.00 from holding Jiangsu Yueda Investment or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Chengdu Xingrong Investment
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Chengdu Xingrong Inv |
Jiangsu Yueda and Chengdu Xingrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Chengdu Xingrong
The main advantage of trading using opposite Jiangsu Yueda and Chengdu Xingrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda position performs unexpectedly, Chengdu Xingrong 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 Chengdu Xingrong will offset losses from the drop in Chengdu Xingrong's long position.| Jiangsu Yueda vs. PetroChina Co Ltd | Jiangsu Yueda vs. China State Construction | Jiangsu Yueda vs. China Mobile Limited | Jiangsu Yueda vs. Industrial and Commercial |
| Chengdu Xingrong vs. Hangzhou Weiguang Electronic | Chengdu Xingrong vs. Hefei Metalforming Mach | Chengdu Xingrong vs. Guocheng Mining Co | Chengdu Xingrong vs. Shanghai Yanpu Metal |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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