Correlation Between Jiangsu Xinri and Hengli Industrial
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By analyzing existing cross correlation between Jiangsu Xinri E Vehicle and Hengli Industrial Development, you can compare the effects of market volatilities on Jiangsu Xinri and Hengli Industrial 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 Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinri and Hengli Industrial.
Diversification Opportunities for Jiangsu Xinri and Hengli Industrial
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangsu and Hengli is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinri E Vehicle and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial 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 Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Jiangsu Xinri i.e., Jiangsu Xinri and Hengli Industrial go up and down completely randomly.
Pair Corralation between Jiangsu Xinri and Hengli Industrial
Assuming the 90 days trading horizon Jiangsu Xinri E Vehicle is expected to under-perform the Hengli Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Xinri E Vehicle is 1.27 times less risky than Hengli Industrial. The stock trades about -0.04 of its potential returns per unit of risk. The Hengli Industrial Development is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 441.00 in Hengli Industrial Development on October 9, 2024 and sell it today you would lose (230.00) from holding Hengli Industrial Development or give up 52.15% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Xinri E Vehicle vs. Hengli Industrial Development
Performance |
Timeline |
Jiangsu Xinri E |
Hengli Industrial |
Jiangsu Xinri and Hengli Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Xinri and Hengli Industrial
The main advantage of trading using opposite Jiangsu Xinri and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinri position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.Jiangsu Xinri vs. Citic Guoan Wine | Jiangsu Xinri vs. Nanjing Putian Telecommunications | Jiangsu Xinri vs. Shanghai Jinfeng Wine | Jiangsu Xinri vs. Anhui Gujing Distillery |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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