Correlation Between Jingjin Environmental and Railway Signal
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jingjin Environmental Protection and Railway Signal Communication, you can compare the effects of market volatilities on Jingjin Environmental and Railway Signal 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 Jingjin Environmental with a short position of Railway Signal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jingjin Environmental and Railway Signal.
Diversification Opportunities for Jingjin Environmental and Railway Signal
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jingjin and Railway is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jingjin Environmental Protecti and Railway Signal Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Railway Signal Commu and Jingjin Environmental 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 Jingjin Environmental Protection are associated (or correlated) with Railway Signal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Railway Signal Commu has no effect on the direction of Jingjin Environmental i.e., Jingjin Environmental and Railway Signal go up and down completely randomly.
Pair Corralation between Jingjin Environmental and Railway Signal
Assuming the 90 days trading horizon Jingjin Environmental Protection is expected to under-perform the Railway Signal. But the stock apears to be less risky and, when comparing its historical volatility, Jingjin Environmental Protection is 1.16 times less risky than Railway Signal. The stock trades about -0.04 of its potential returns per unit of risk. The Railway Signal Communication is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 559.00 in Railway Signal Communication on September 13, 2024 and sell it today you would earn a total of 88.00 from holding Railway Signal Communication or generate 15.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jingjin Environmental Protecti vs. Railway Signal Communication
Performance |
| Timeline |
| Jingjin Environmental |
| Railway Signal Commu |
Jingjin Environmental and Railway Signal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jingjin Environmental and Railway Signal
The main advantage of trading using opposite Jingjin Environmental and Railway Signal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jingjin Environmental position performs unexpectedly, Railway Signal 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 Railway Signal will offset losses from the drop in Railway Signal's long position.The idea behind Jingjin Environmental Protection and Railway Signal Communication 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.
| Railway Signal vs. Ming Yang Smart | Railway Signal vs. 159681 | Railway Signal vs. 159005 | Railway Signal vs. Loctek Ergonomic Technology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |