Correlation Between Jiangsu Xinri and Dawning Information
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By analyzing existing cross correlation between Jiangsu Xinri E Vehicle and Dawning Information Industry, you can compare the effects of market volatilities on Jiangsu Xinri and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinri and Dawning Information.
Diversification Opportunities for Jiangsu Xinri and Dawning Information
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Dawning is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinri E Vehicle and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Jiangsu Xinri i.e., Jiangsu Xinri and Dawning Information go up and down completely randomly.
Pair Corralation between Jiangsu Xinri and Dawning Information
Assuming the 90 days trading horizon Jiangsu Xinri E Vehicle is expected to under-perform the Dawning Information. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Xinri E Vehicle is 1.83 times less risky than Dawning Information. The stock trades about -0.06 of its potential returns per unit of risk. The Dawning Information Industry is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 5,249 in Dawning Information Industry on September 3, 2024 and sell it today you would earn a total of 3,231 from holding Dawning Information Industry or generate 61.55% 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. Dawning Information Industry
Performance |
| Timeline |
| Jiangsu Xinri E |
| Dawning Information |
Jiangsu Xinri and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinri and Dawning Information
The main advantage of trading using opposite Jiangsu Xinri and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinri position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| Jiangsu Xinri vs. PetroChina Co Ltd | Jiangsu Xinri vs. China Mobile Limited | Jiangsu Xinri vs. Industrial and Commercial | Jiangsu Xinri vs. China Life Insurance |
| Dawning Information vs. Shanghai Xinhua Media | Dawning Information vs. Shanghai Metersbonwe FashionAccessories | Dawning Information vs. Guangdong Jingyi Metal | Dawning Information vs. Chengtun Mining Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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