Correlation Between Industrial and Jinlong Machinery
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By analyzing existing cross correlation between Industrial and Commercial and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Jinlong Machinery.
Diversification Opportunities for Industrial and Jinlong Machinery
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrial and Jinlong is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery and Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Industrial and Jinlong Machinery
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.31 times more return on investment than Jinlong Machinery. However, Industrial and Commercial is 3.19 times less risky than Jinlong Machinery. It trades about 0.09 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about 0.01 per unit of risk. If you would invest 406.00 in Industrial and Commercial on October 11, 2024 and sell it today you would earn a total of 270.00 from holding Industrial and Commercial or generate 66.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Industrial and Commercial |
| Jinlong Machinery |
Industrial and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Jinlong Machinery
The main advantage of trading using opposite Industrial and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. Digital China Information | Industrial vs. Wonders Information | Industrial vs. Qijing Machinery | Industrial vs. Ningbo Construction Co |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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