Correlation Between Jiangsu Xinri and China Longyuan
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By analyzing existing cross correlation between Jiangsu Xinri E Vehicle and China Longyuan Power, you can compare the effects of market volatilities on Jiangsu Xinri and China Longyuan 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 Longyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinri and China Longyuan.
Diversification Opportunities for Jiangsu Xinri and China Longyuan
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and China is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinri E Vehicle and China Longyuan Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Longyuan Power 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 Longyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Longyuan Power has no effect on the direction of Jiangsu Xinri i.e., Jiangsu Xinri and China Longyuan go up and down completely randomly.
Pair Corralation between Jiangsu Xinri and China Longyuan
Assuming the 90 days trading horizon Jiangsu Xinri E Vehicle is expected to generate 1.62 times more return on investment than China Longyuan. However, Jiangsu Xinri is 1.62 times more volatile than China Longyuan Power. It trades about 0.11 of its potential returns per unit of risk. China Longyuan Power is currently generating about 0.04 per unit of risk. If you would invest 985.00 in Jiangsu Xinri E Vehicle on November 6, 2024 and sell it today you would earn a total of 32.00 from holding Jiangsu Xinri E Vehicle or generate 3.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinri E Vehicle vs. China Longyuan Power
Performance |
| Timeline |
| Jiangsu Xinri E |
| China Longyuan Power |
Jiangsu Xinri and China Longyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinri and China Longyuan
The main advantage of trading using opposite Jiangsu Xinri and China Longyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinri position performs unexpectedly, China Longyuan 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 Longyuan will offset losses from the drop in China Longyuan's long position.| Jiangsu Xinri vs. Guangzhou KingTeller Technology | Jiangsu Xinri vs. Jinhe Biotechnology Co | Jiangsu Xinri vs. Cabio Biotech Wuhan | Jiangsu Xinri vs. Bingo Software Co |
| China Longyuan vs. Hua Hong Semiconductor | China Longyuan vs. Shanghai V Test Semiconductor | China Longyuan vs. Ping An Insurance | China Longyuan vs. Thinkon Semiconductor Jinzhou |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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