Correlation Between Jiangsu Yueda and Allwin Telecommunicatio
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Allwin Telecommunication Co, you can compare the effects of market volatilities on Jiangsu Yueda and Allwin Telecommunicatio 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 Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Allwin Telecommunicatio.
Diversification Opportunities for Jiangsu Yueda and Allwin Telecommunicatio
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Allwin is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio 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 Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Jiangsu Yueda i.e., Jiangsu Yueda and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Allwin Telecommunicatio
Assuming the 90 days trading horizon Jiangsu Yueda Investment is expected to generate 0.63 times more return on investment than Allwin Telecommunicatio. However, Jiangsu Yueda Investment is 1.6 times less risky than Allwin Telecommunicatio. It trades about 0.06 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about -0.02 per unit of risk. If you would invest 462.00 in Jiangsu Yueda Investment on September 1, 2024 and sell it today you would earn a total of 11.00 from holding Jiangsu Yueda Investment or generate 2.38% 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. Allwin Telecommunication Co
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Allwin Telecommunicatio |
Jiangsu Yueda and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Allwin Telecommunicatio
The main advantage of trading using opposite Jiangsu Yueda and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio'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 |
| Allwin Telecommunicatio vs. Industrial and Commercial | Allwin Telecommunicatio vs. Kweichow Moutai Co | Allwin Telecommunicatio vs. Agricultural Bank of | Allwin Telecommunicatio vs. China Mobile Limited |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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