Correlation Between Jiangsu Yueda and Yuan Longping
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Yuan Longping High tech, you can compare the effects of market volatilities on Jiangsu Yueda and Yuan Longping 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 Yuan Longping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Yuan Longping.
Diversification Opportunities for Jiangsu Yueda and Yuan Longping
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Yuan is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Yuan Longping High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan Longping High 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 Yuan Longping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan Longping High has no effect on the direction of Jiangsu Yueda i.e., Jiangsu Yueda and Yuan Longping go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Yuan Longping
Assuming the 90 days trading horizon Jiangsu Yueda Investment is expected to generate 1.59 times more return on investment than Yuan Longping. However, Jiangsu Yueda is 1.59 times more volatile than Yuan Longping High tech. It trades about 0.02 of its potential returns per unit of risk. Yuan Longping High tech is currently generating about -0.06 per unit of risk. If you would invest 467.00 in Jiangsu Yueda Investment on September 2, 2024 and sell it today you would earn a total of 6.00 from holding Jiangsu Yueda Investment or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Yuan Longping High tech
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Yuan Longping High |
Jiangsu Yueda and Yuan Longping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Yuan Longping
The main advantage of trading using opposite Jiangsu Yueda and Yuan Longping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda position performs unexpectedly, Yuan Longping 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 Yuan Longping will offset losses from the drop in Yuan Longping's long position.| Jiangsu Yueda vs. China State Construction | Jiangsu Yueda vs. Poly Real Estate | Jiangsu Yueda vs. China Vanke Co | Jiangsu Yueda vs. China Merchants Shekou |
| Yuan Longping vs. Ming Yang Smart | Yuan Longping vs. 159681 | Yuan Longping vs. 159005 | Yuan Longping vs. Loctek Ergonomic Technology |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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