Correlation Between Jiangsu Yueda and Dongfeng Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Yueda Investment and Dongfeng Automobile Co, you can compare the effects of market volatilities on Jiangsu Yueda and Dongfeng Automobile 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 Dongfeng Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Dongfeng Automobile.
Diversification Opportunities for Jiangsu Yueda and Dongfeng Automobile
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Dongfeng is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Dongfeng Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongfeng Automobile 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 Dongfeng Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongfeng Automobile has no effect on the direction of Jiangsu Yueda i.e., Jiangsu Yueda and Dongfeng Automobile go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Dongfeng Automobile
Assuming the 90 days trading horizon Jiangsu Yueda Investment is expected to generate 0.53 times more return on investment than Dongfeng Automobile. However, Jiangsu Yueda Investment is 1.9 times less risky than Dongfeng Automobile. It trades about -0.17 of its potential returns per unit of risk. Dongfeng Automobile Co is currently generating about -0.19 per unit of risk. If you would invest 450.00 in Jiangsu Yueda Investment on October 29, 2024 and sell it today you would lose (24.00) from holding Jiangsu Yueda Investment or give up 5.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Dongfeng Automobile Co
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Dongfeng Automobile |
Jiangsu Yueda and Dongfeng Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Dongfeng Automobile
The main advantage of trading using opposite Jiangsu Yueda and Dongfeng Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda position performs unexpectedly, Dongfeng Automobile 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 Dongfeng Automobile will offset losses from the drop in Dongfeng Automobile's long position.| Jiangsu Yueda vs. Andon Health Co | Jiangsu Yueda vs. Dezhan HealthCare Co | Jiangsu Yueda vs. Shandong Sinoglory Health | Jiangsu Yueda vs. Yunnan Jianzhijia Health Chain |
| Dongfeng Automobile vs. Guangzhou Jinyi Media | Dongfeng Automobile vs. Xinxiang Chemical Fiber | Dongfeng Automobile vs. Omnijoi Media Corp | Dongfeng Automobile vs. Liaoning Dingjide Petrochemical |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |