Correlation Between Gem Year and Jiangsu Xinri
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By analyzing existing cross correlation between Gem Year Industrial Co and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Jiangsu Xinri.
Diversification Opportunities for Gem Year and Jiangsu Xinri
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gem and Jiangsu is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co 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 Gem Year 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 Gem Year Industrial Co 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 Gem Year i.e., Gem Year and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Gem Year and Jiangsu Xinri
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 0.96 times more return on investment than Jiangsu Xinri. However, Gem Year Industrial Co is 1.04 times less risky than Jiangsu Xinri. It trades about 0.02 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about -0.08 per unit of risk. If you would invest 444.00 in Gem Year Industrial Co on October 30, 2024 and sell it today you would earn a total of 5.00 from holding Gem Year Industrial Co or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Gem Year Industrial |
| Jiangsu Xinri E |
Gem Year and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Jiangsu Xinri
The main advantage of trading using opposite Gem Year and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. Anhui Transport Consulting | Gem Year vs. Citic Guoan Wine | Gem Year vs. Shaanxi Broadcast TV | Gem Year vs. Eastroc Beverage Group |
| Jiangsu Xinri vs. Xiangyang Automobile Bearing | Jiangsu Xinri vs. Ningbo Fangzheng Automobile | Jiangsu Xinri vs. Guangzhou Seagull Kitchen | Jiangsu Xinri vs. Guangzhou Automobile Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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