Correlation Between Jiangsu Xinri and Glodon Software
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By analyzing existing cross correlation between Jiangsu Xinri E Vehicle and Glodon Software Co, you can compare the effects of market volatilities on Jiangsu Xinri and Glodon Software 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 Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinri and Glodon Software.
Diversification Opportunities for Jiangsu Xinri and Glodon Software
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Glodon is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinri E Vehicle and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software 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 Glodon Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glodon Software has no effect on the direction of Jiangsu Xinri i.e., Jiangsu Xinri and Glodon Software go up and down completely randomly.
Pair Corralation between Jiangsu Xinri and Glodon Software
Assuming the 90 days trading horizon Jiangsu Xinri E Vehicle is expected to generate 0.72 times more return on investment than Glodon Software. However, Jiangsu Xinri E Vehicle is 1.39 times less risky than Glodon Software. It trades about 0.1 of its potential returns per unit of risk. Glodon Software Co is currently generating about -0.12 per unit of risk. If you would invest 1,055 in Jiangsu Xinri E Vehicle on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Jiangsu Xinri E Vehicle or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinri E Vehicle vs. Glodon Software Co
Performance |
| Timeline |
| Jiangsu Xinri E |
| Glodon Software |
Jiangsu Xinri and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinri and Glodon Software
The main advantage of trading using opposite Jiangsu Xinri and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinri position performs unexpectedly, Glodon Software 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 Glodon Software will offset losses from the drop in Glodon Software's long position.| Jiangsu Xinri vs. Dawning Information Industry | Jiangsu Xinri vs. Ye Chiu Metal | Jiangsu Xinri vs. State Grid InformationCommunication | Jiangsu Xinri vs. Offshore Oil Engineering |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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