Correlation Between Jiangyin Jianghua and Lingyuan Iron
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By analyzing existing cross correlation between Jiangyin Jianghua Microelectronics and Lingyuan Iron Steel, you can compare the effects of market volatilities on Jiangyin Jianghua and Lingyuan Iron 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 Lingyuan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangyin Jianghua and Lingyuan Iron.
Diversification Opportunities for Jiangyin Jianghua and Lingyuan Iron
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangyin and Lingyuan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jiangyin Jianghua Microelectro and Lingyuan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lingyuan Iron Steel 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 Lingyuan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lingyuan Iron Steel has no effect on the direction of Jiangyin Jianghua i.e., Jiangyin Jianghua and Lingyuan Iron go up and down completely randomly.
Pair Corralation between Jiangyin Jianghua and Lingyuan Iron
Assuming the 90 days trading horizon Jiangyin Jianghua Microelectronics is expected to generate 1.3 times more return on investment than Lingyuan Iron. However, Jiangyin Jianghua is 1.3 times more volatile than Lingyuan Iron Steel. It trades about 0.03 of its potential returns per unit of risk. Lingyuan Iron Steel is currently generating about 0.0 per unit of risk. If you would invest 1,760 in Jiangyin Jianghua Microelectronics on September 3, 2024 and sell it today you would earn a total of 296.00 from holding Jiangyin Jianghua Microelectronics or generate 16.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangyin Jianghua Microelectro vs. Lingyuan Iron Steel
Performance |
| Timeline |
| Jiangyin Jianghua |
| Lingyuan Iron Steel |
Jiangyin Jianghua and Lingyuan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangyin Jianghua and Lingyuan Iron
The main advantage of trading using opposite Jiangyin Jianghua and Lingyuan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangyin Jianghua position performs unexpectedly, Lingyuan Iron 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 Lingyuan Iron will offset losses from the drop in Lingyuan Iron's long position.| Jiangyin Jianghua vs. Agricultural Bank of | Jiangyin Jianghua vs. China Construction Bank | Jiangyin Jianghua vs. Postal Savings Bank | Jiangyin Jianghua vs. Bank of Communications |
| Lingyuan Iron vs. Zijin Mining Group | Lingyuan Iron vs. Wanhua Chemical Group | Lingyuan Iron vs. Baoshan Iron Steel | Lingyuan Iron vs. Rongsheng Petrochemical Co |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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