Correlation Between Jiangsu Xinri and China Reform
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By analyzing existing cross correlation between Jiangsu Xinri E Vehicle and China Reform Health, you can compare the effects of market volatilities on Jiangsu Xinri and China Reform 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 Jiangsu Xinri with a short position of China Reform. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinri and China Reform.
Diversification Opportunities for Jiangsu Xinri and China Reform
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and China is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinri E Vehicle and China Reform Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Reform Health and Jiangsu Xinri 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 Jiangsu Xinri E Vehicle are associated (or correlated) with China Reform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Reform Health has no effect on the direction of Jiangsu Xinri i.e., Jiangsu Xinri and China Reform go up and down completely randomly.
Pair Corralation between Jiangsu Xinri and China Reform
Assuming the 90 days trading horizon Jiangsu Xinri is expected to generate 3.45 times less return on investment than China Reform. But when comparing it to its historical volatility, Jiangsu Xinri E Vehicle is 1.59 times less risky than China Reform. It trades about 0.05 of its potential returns per unit of risk. China Reform Health is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 673.00 in China Reform Health on October 18, 2024 and sell it today you would earn a total of 356.00 from holding China Reform Health or generate 52.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinri E Vehicle vs. China Reform Health
Performance |
| Timeline |
| Jiangsu Xinri E |
| China Reform Health |
Jiangsu Xinri and China Reform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinri and China Reform
The main advantage of trading using opposite Jiangsu Xinri and China Reform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinri position performs unexpectedly, China Reform 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 China Reform will offset losses from the drop in China Reform's long position.| Jiangsu Xinri vs. Lonkey Industrial Co | Jiangsu Xinri vs. Chenzhou Jingui Silver | Jiangsu Xinri vs. Western Mining Co | Jiangsu Xinri vs. Tibet Huayu Mining |
| China Reform vs. Changchun Engley Automobile | China Reform vs. Haima Automobile Group | China Reform vs. Chengtun Mining Group | China Reform vs. Jiangsu Xinri E Vehicle |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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