Correlation Between Universal Scientific and Jinlong Machinery
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By analyzing existing cross correlation between Universal Scientific Industrial and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Universal Scientific and Jinlong Machinery 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 Universal Scientific with a short position of Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Scientific and Jinlong Machinery.
Diversification Opportunities for Universal Scientific and Jinlong Machinery
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Universal and Jinlong is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Universal Scientific Industria and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery and Universal Scientific 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 Universal Scientific Industrial are associated (or correlated) with Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Universal Scientific i.e., Universal Scientific and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Universal Scientific and Jinlong Machinery
Assuming the 90 days trading horizon Universal Scientific Industrial is expected to generate 0.65 times more return on investment than Jinlong Machinery. However, Universal Scientific Industrial is 1.53 times less risky than Jinlong Machinery. It trades about 0.12 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about -0.17 per unit of risk. If you would invest 1,418 in Universal Scientific Industrial on October 30, 2024 and sell it today you would earn a total of 144.00 from holding Universal Scientific Industrial or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Universal Scientific Industria vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Universal Scientific |
| Jinlong Machinery |
Universal Scientific and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Scientific and Jinlong Machinery
The main advantage of trading using opposite Universal Scientific and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Scientific position performs unexpectedly, Jinlong Machinery 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery's long position.| Universal Scientific vs. Chengdu Kanghua Biological | Universal Scientific vs. Suzhou Novoprotein Scientific | Universal Scientific vs. Aluminum Corp of | Universal Scientific vs. COL Digital Publishing |
| Jinlong Machinery vs. Jiangsu Yanghe Brewery | Jinlong Machinery vs. Chison Medical Technologies | Jinlong Machinery vs. Tinavi Medical Technologies | Jinlong Machinery vs. Zhongzhu Medical Holdings |
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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