Correlation Between Xiangpiaopiao Food and Jinlong Machinery
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By analyzing existing cross correlation between Xiangpiaopiao Food Co and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Xiangpiaopiao Food 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 Xiangpiaopiao Food with a short position of Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangpiaopiao Food and Jinlong Machinery.
Diversification Opportunities for Xiangpiaopiao Food and Jinlong Machinery
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xiangpiaopiao and Jinlong is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Xiangpiaopiao Food Co and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery and Xiangpiaopiao Food 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 Xiangpiaopiao Food Co 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 Xiangpiaopiao Food i.e., Xiangpiaopiao Food and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Xiangpiaopiao Food and Jinlong Machinery
Assuming the 90 days trading horizon Xiangpiaopiao Food Co is expected to generate 1.51 times more return on investment than Jinlong Machinery. However, Xiangpiaopiao Food is 1.51 times more volatile than Jinlong Machinery Electronic. It trades about -0.07 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about -0.3 per unit of risk. If you would invest 1,688 in Xiangpiaopiao Food Co on October 11, 2024 and sell it today you would lose (181.00) from holding Xiangpiaopiao Food Co or give up 10.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangpiaopiao Food Co vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Xiangpiaopiao Food |
| Jinlong Machinery |
Xiangpiaopiao Food and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangpiaopiao Food and Jinlong Machinery
The main advantage of trading using opposite Xiangpiaopiao Food and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangpiaopiao Food 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.| Xiangpiaopiao Food vs. King Strong New Material | Xiangpiaopiao Food vs. Guangzhou Tinci Materials | Xiangpiaopiao Food vs. Fuda Alloy Materials | Xiangpiaopiao Food vs. Sharetronic Data Technology |
| Jinlong Machinery vs. Financial Street Holdings | Jinlong Machinery vs. Ping An Insurance | Jinlong Machinery vs. Panda Financial Holding | Jinlong Machinery vs. GRG Banking Equipment |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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