Correlation Between Jiangsu Xinri and Dongguan Tarry
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By analyzing existing cross correlation between Jiangsu Xinri E Vehicle and Dongguan Tarry Electronics, you can compare the effects of market volatilities on Jiangsu Xinri and Dongguan Tarry 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 Dongguan Tarry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinri and Dongguan Tarry.
Diversification Opportunities for Jiangsu Xinri and Dongguan Tarry
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangsu and Dongguan is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinri E Vehicle and Dongguan Tarry Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Tarry Elect 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 Dongguan Tarry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Tarry Elect has no effect on the direction of Jiangsu Xinri i.e., Jiangsu Xinri and Dongguan Tarry go up and down completely randomly.
Pair Corralation between Jiangsu Xinri and Dongguan Tarry
Assuming the 90 days trading horizon Jiangsu Xinri is expected to generate 6.85 times less return on investment than Dongguan Tarry. But when comparing it to its historical volatility, Jiangsu Xinri E Vehicle is 1.76 times less risky than Dongguan Tarry. It trades about 0.04 of its potential returns per unit of risk. Dongguan Tarry Electronics is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4,135 in Dongguan Tarry Electronics on October 18, 2024 and sell it today you would earn a total of 2,532 from holding Dongguan Tarry Electronics or generate 61.23% return on investment 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. Dongguan Tarry Electronics
Performance |
| Timeline |
| Jiangsu Xinri E |
| Dongguan Tarry Elect |
Jiangsu Xinri and Dongguan Tarry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinri and Dongguan Tarry
The main advantage of trading using opposite Jiangsu Xinri and Dongguan Tarry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinri position performs unexpectedly, Dongguan Tarry 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 Dongguan Tarry will offset losses from the drop in Dongguan Tarry's long position.| Jiangsu Xinri vs. Bank of Suzhou | Jiangsu Xinri vs. Unisplendour Corp | Jiangsu Xinri vs. Do Fluoride Chemicals Co | Jiangsu Xinri vs. Porton Fine Chemicals |
| Dongguan Tarry vs. Songz Automobile Air | Dongguan Tarry vs. Jiangsu Xinri E Vehicle | Dongguan Tarry vs. Xiangyang Automobile Bearing | Dongguan Tarry vs. Guangdong Jinma Entertainment |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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