Correlation Between Jiangxi JDL and XCMG Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangxi JDL Environmental and XCMG Construction Machinery, you can compare the effects of market volatilities on Jiangxi JDL and XCMG Construction 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 Jiangxi JDL with a short position of XCMG Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi JDL and XCMG Construction.
Diversification Opportunities for Jiangxi JDL and XCMG Construction
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangxi and XCMG is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi JDL Environmental and XCMG Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XCMG Construction and Jiangxi JDL 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 Jiangxi JDL Environmental are associated (or correlated) with XCMG Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XCMG Construction has no effect on the direction of Jiangxi JDL i.e., Jiangxi JDL and XCMG Construction go up and down completely randomly.
Pair Corralation between Jiangxi JDL and XCMG Construction
Assuming the 90 days trading horizon Jiangxi JDL Environmental is expected to under-perform the XCMG Construction. But the stock apears to be less risky and, when comparing its historical volatility, Jiangxi JDL Environmental is 1.03 times less risky than XCMG Construction. The stock trades about -0.01 of its potential returns per unit of risk. The XCMG Construction Machinery is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 653.00 in XCMG Construction Machinery on December 4, 2024 and sell it today you would earn a total of 230.00 from holding XCMG Construction Machinery or generate 35.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jiangxi JDL Environmental vs. XCMG Construction Machinery
Performance |
| Timeline |
| Jiangxi JDL Environmental |
| XCMG Construction |
Jiangxi JDL and XCMG Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi JDL and XCMG Construction
The main advantage of trading using opposite Jiangxi JDL and XCMG Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi JDL position performs unexpectedly, XCMG Construction 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 XCMG Construction will offset losses from the drop in XCMG Construction's long position.| Jiangxi JDL vs. Montage Technology Co | Jiangxi JDL vs. Beijing Kingsoft Office | Jiangxi JDL vs. Dhc Software Co | Jiangxi JDL vs. HMTNew Technical |
| XCMG Construction vs. Will Semiconductor Co | XCMG Construction vs. Bank of Suzhou | XCMG Construction vs. Guosheng Financial Holding | XCMG Construction vs. HeNan Splendor Science |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |