Correlation Between Jiangyin Jianghua and Jinlong Machinery
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By analyzing existing cross correlation between Jiangyin Jianghua Microelectronics and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Jiangyin Jianghua 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 Jiangyin Jianghua with a short position of Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangyin Jianghua and Jinlong Machinery.
Diversification Opportunities for Jiangyin Jianghua and Jinlong Machinery
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangyin and Jinlong is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jiangyin Jianghua Microelectro and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery and Jiangyin Jianghua 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 Jiangyin Jianghua Microelectronics 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 Jiangyin Jianghua i.e., Jiangyin Jianghua and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Jiangyin Jianghua and Jinlong Machinery
Assuming the 90 days trading horizon Jiangyin Jianghua Microelectronics is expected to generate 0.76 times more return on investment than Jinlong Machinery. However, Jiangyin Jianghua Microelectronics is 1.31 times less risky than Jinlong Machinery. It trades about -0.1 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about -0.2 per unit of risk. If you would invest 1,728 in Jiangyin Jianghua Microelectronics on October 19, 2024 and sell it today you would lose (118.00) from holding Jiangyin Jianghua Microelectronics or give up 6.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangyin Jianghua Microelectro vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Jiangyin Jianghua |
| Jinlong Machinery |
Jiangyin Jianghua and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangyin Jianghua and Jinlong Machinery
The main advantage of trading using opposite Jiangyin Jianghua and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangyin Jianghua 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.| Jiangyin Jianghua vs. Shaanxi Construction Machinery | Jiangyin Jianghua vs. Allied Machinery Co | Jiangyin Jianghua vs. Huasi Agricultural Development | Jiangyin Jianghua vs. Jiangsu Yanghe Brewery |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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