Correlation Between Jiangsu Xinri and Vanfund Urban
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By analyzing existing cross correlation between Jiangsu Xinri E Vehicle and Vanfund Urban Investment, you can compare the effects of market volatilities on Jiangsu Xinri and Vanfund Urban 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 Vanfund Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinri and Vanfund Urban.
Diversification Opportunities for Jiangsu Xinri and Vanfund Urban
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Vanfund is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinri E Vehicle and Vanfund Urban Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanfund Urban Investment 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 Vanfund Urban. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanfund Urban Investment has no effect on the direction of Jiangsu Xinri i.e., Jiangsu Xinri and Vanfund Urban go up and down completely randomly.
Pair Corralation between Jiangsu Xinri and Vanfund Urban
Assuming the 90 days trading horizon Jiangsu Xinri E Vehicle is expected to generate 0.71 times more return on investment than Vanfund Urban. However, Jiangsu Xinri E Vehicle is 1.42 times less risky than Vanfund Urban. It trades about -0.2 of its potential returns per unit of risk. Vanfund Urban Investment is currently generating about -0.21 per unit of risk. If you would invest 1,148 in Jiangsu Xinri E Vehicle on October 20, 2024 and sell it today you would lose (124.00) from holding Jiangsu Xinri E Vehicle or give up 10.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinri E Vehicle vs. Vanfund Urban Investment
Performance |
| Timeline |
| Jiangsu Xinri E |
| Vanfund Urban Investment |
Jiangsu Xinri and Vanfund Urban Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinri and Vanfund Urban
The main advantage of trading using opposite Jiangsu Xinri and Vanfund Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinri position performs unexpectedly, Vanfund Urban 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 Vanfund Urban will offset losses from the drop in Vanfund Urban's long position.| Jiangsu Xinri vs. Markor International Home | Jiangsu Xinri vs. Shanghai Jinfeng Wine | Jiangsu Xinri vs. Innovative Medical Management | Jiangsu Xinri vs. Anhui Gujing Distillery |
| Vanfund Urban vs. Ming Yang Smart | Vanfund Urban vs. 159681 | Vanfund Urban vs. 159005 | Vanfund Urban 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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