Correlation Between Jiangxi JDL and Jiangsu Jinling
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By analyzing existing cross correlation between Jiangxi JDL Environmental and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Jiangxi JDL and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi JDL and Jiangsu Jinling.
Diversification Opportunities for Jiangxi JDL and Jiangsu Jinling
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Jiangsu is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi JDL Environmental and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Jiangxi JDL i.e., Jiangxi JDL and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Jiangxi JDL and Jiangsu Jinling
Assuming the 90 days trading horizon Jiangxi JDL Environmental is expected to generate 0.69 times more return on investment than Jiangsu Jinling. However, Jiangxi JDL Environmental is 1.44 times less risky than Jiangsu Jinling. It trades about -0.01 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about -0.03 per unit of risk. If you would invest 1,302 in Jiangxi JDL Environmental on August 25, 2024 and sell it today you would lose (143.00) from holding Jiangxi JDL Environmental or give up 10.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi JDL Environmental vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Jiangxi JDL Environmental |
| Jiangsu Jinling Sports |
Jiangxi JDL and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi JDL and Jiangsu Jinling
The main advantage of trading using opposite Jiangxi JDL and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi JDL position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Jiangxi JDL vs. Guizhou BroadcastingTV Info | Jiangxi JDL vs. Xizi Clean Energy | Jiangxi JDL vs. Longjian Road Bridge | Jiangxi JDL vs. XinJiang GuoTong Pipeline |
| Jiangsu Jinling vs. Western Metal Materials | Jiangsu Jinling vs. Dalian Thermal Power | Jiangsu Jinling vs. Shanghai Yanpu Metal | Jiangsu Jinling vs. China Publishing Media |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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