Correlation Between Vohringer Home and Jiangsu Xinri
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By analyzing existing cross correlation between Vohringer Home Technology and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Vohringer Home and Jiangsu Xinri 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 Vohringer Home with a short position of Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vohringer Home and Jiangsu Xinri.
Diversification Opportunities for Vohringer Home and Jiangsu Xinri
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vohringer and Jiangsu is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Vohringer Home Technology and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E and Vohringer Home 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 Vohringer Home Technology are associated (or correlated) with Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Vohringer Home i.e., Vohringer Home and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Vohringer Home and Jiangsu Xinri
Assuming the 90 days trading horizon Vohringer Home Technology is expected to generate 1.52 times more return on investment than Jiangsu Xinri. However, Vohringer Home is 1.52 times more volatile than Jiangsu Xinri E Vehicle. It trades about 0.22 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about 0.1 per unit of risk. If you would invest 423.00 in Vohringer Home Technology on September 1, 2024 and sell it today you would earn a total of 72.00 from holding Vohringer Home Technology or generate 17.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vohringer Home Technology vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Vohringer Home Technology |
| Jiangsu Xinri E |
Vohringer Home and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vohringer Home and Jiangsu Xinri
The main advantage of trading using opposite Vohringer Home and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vohringer Home position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Vohringer Home vs. Tongxing Environmental Protection | Vohringer Home vs. Eastroc Beverage Group | Vohringer Home vs. HaiXin Foods Co | Vohringer Home vs. Lingyuan Iron Steel |
| Jiangsu Xinri vs. Dawning Information Industry | Jiangsu Xinri vs. Ye Chiu Metal | Jiangsu Xinri vs. State Grid InformationCommunication | Jiangsu Xinri vs. Offshore Oil Engineering |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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