Correlation Between Jiangsu Xinri and Zoy Home
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By analyzing existing cross correlation between Jiangsu Xinri E Vehicle and Zoy Home Furnishing, you can compare the effects of market volatilities on Jiangsu Xinri and Zoy Home 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 Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinri and Zoy Home.
Diversification Opportunities for Jiangsu Xinri and Zoy Home
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Zoy is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinri E Vehicle and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing 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 Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of Jiangsu Xinri i.e., Jiangsu Xinri and Zoy Home go up and down completely randomly.
Pair Corralation between Jiangsu Xinri and Zoy Home
Assuming the 90 days trading horizon Jiangsu Xinri is expected to generate 1.96 times less return on investment than Zoy Home. But when comparing it to its historical volatility, Jiangsu Xinri E Vehicle is 1.06 times less risky than Zoy Home. It trades about 0.1 of its potential returns per unit of risk. Zoy Home Furnishing is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,049 in Zoy Home Furnishing on September 1, 2024 and sell it today you would earn a total of 105.00 from holding Zoy Home Furnishing or generate 10.01% 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. Zoy Home Furnishing
Performance |
| Timeline |
| Jiangsu Xinri E |
| Zoy Home Furnishing |
Jiangsu Xinri and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinri and Zoy Home
The main advantage of trading using opposite Jiangsu Xinri and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinri position performs unexpectedly, Zoy Home 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 Zoy Home will offset losses from the drop in Zoy Home'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 |
| Zoy Home vs. Xinhua Winshare Publishing | Zoy Home vs. Dhc Software Co | Zoy Home vs. Yingde Greatchem Chemicals | Zoy Home vs. Shanghai Action Education |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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