Correlation Between Jiangyin Jianghua and Beijing Roborock
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By analyzing existing cross correlation between Jiangyin Jianghua Microelectronics and Beijing Roborock Technology, you can compare the effects of market volatilities on Jiangyin Jianghua and Beijing Roborock 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 Beijing Roborock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangyin Jianghua and Beijing Roborock.
Diversification Opportunities for Jiangyin Jianghua and Beijing Roborock
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiangyin and Beijing is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Jiangyin Jianghua Microelectro and Beijing Roborock Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Roborock Tec 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 Beijing Roborock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Roborock Tec has no effect on the direction of Jiangyin Jianghua i.e., Jiangyin Jianghua and Beijing Roborock go up and down completely randomly.
Pair Corralation between Jiangyin Jianghua and Beijing Roborock
Assuming the 90 days trading horizon Jiangyin Jianghua Microelectronics is expected to generate 0.69 times more return on investment than Beijing Roborock. However, Jiangyin Jianghua Microelectronics is 1.45 times less risky than Beijing Roborock. It trades about 0.15 of its potential returns per unit of risk. Beijing Roborock Technology is currently generating about -0.1 per unit of risk. If you would invest 1,303 in Jiangyin Jianghua Microelectronics on August 30, 2024 and sell it today you would earn a total of 981.00 from holding Jiangyin Jianghua Microelectronics or generate 75.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangyin Jianghua Microelectro vs. Beijing Roborock Technology
Performance |
| Timeline |
| Jiangyin Jianghua |
| Beijing Roborock Tec |
Jiangyin Jianghua and Beijing Roborock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangyin Jianghua and Beijing Roborock
The main advantage of trading using opposite Jiangyin Jianghua and Beijing Roborock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangyin Jianghua position performs unexpectedly, Beijing Roborock 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 Beijing Roborock will offset losses from the drop in Beijing Roborock's long position.The idea behind Jiangyin Jianghua Microelectronics and Beijing Roborock Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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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