Correlation Between Jiangxi JDL and Fujian Newland
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By analyzing existing cross correlation between Jiangxi JDL Environmental and Fujian Newland Computer, you can compare the effects of market volatilities on Jiangxi JDL and Fujian Newland 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 Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi JDL and Fujian Newland.
Diversification Opportunities for Jiangxi JDL and Fujian Newland
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Fujian is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi JDL Environmental and Fujian Newland Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Newland Computer 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 Fujian Newland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Newland Computer has no effect on the direction of Jiangxi JDL i.e., Jiangxi JDL and Fujian Newland go up and down completely randomly.
Pair Corralation between Jiangxi JDL and Fujian Newland
Assuming the 90 days trading horizon Jiangxi JDL is expected to generate 66.67 times less return on investment than Fujian Newland. But when comparing it to its historical volatility, Jiangxi JDL Environmental is 1.27 times less risky than Fujian Newland. It trades about 0.0 of its potential returns per unit of risk. Fujian Newland Computer is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,284 in Fujian Newland Computer on September 3, 2024 and sell it today you would earn a total of 853.00 from holding Fujian Newland Computer or generate 66.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi JDL Environmental vs. Fujian Newland Computer
Performance |
| Timeline |
| Jiangxi JDL Environmental |
| Fujian Newland Computer |
Jiangxi JDL and Fujian Newland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi JDL and Fujian Newland
The main advantage of trading using opposite Jiangxi JDL and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi JDL position performs unexpectedly, Fujian Newland 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 Fujian Newland will offset losses from the drop in Fujian Newland's long position.| Jiangxi JDL vs. Cultural Investment Holdings | Jiangxi JDL vs. Gome Telecom Equipment | Jiangxi JDL vs. Bus Online Co | Jiangxi JDL vs. Holitech Technology Co |
| Fujian Newland vs. Haima Automobile Group | Fujian Newland vs. Nancal Energy Saving Tech | Fujian Newland vs. Panda Financial Holding | Fujian Newland vs. Ping An Insurance |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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