Correlation Between Jiangxi JDL and Eit Environmental
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By analyzing existing cross correlation between Jiangxi JDL Environmental and Eit Environmental Development, you can compare the effects of market volatilities on Jiangxi JDL and Eit Environmental 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 Eit Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi JDL and Eit Environmental.
Diversification Opportunities for Jiangxi JDL and Eit Environmental
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Eit is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi JDL Environmental and Eit Environmental Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eit Environmental 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 Eit Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eit Environmental has no effect on the direction of Jiangxi JDL i.e., Jiangxi JDL and Eit Environmental go up and down completely randomly.
Pair Corralation between Jiangxi JDL and Eit Environmental
Assuming the 90 days trading horizon Jiangxi JDL is expected to generate 16.27 times less return on investment than Eit Environmental. But when comparing it to its historical volatility, Jiangxi JDL Environmental is 1.26 times less risky than Eit Environmental. It trades about 0.0 of its potential returns per unit of risk. Eit Environmental Development is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,450 in Eit Environmental Development on September 12, 2024 and sell it today you would earn a total of 224.00 from holding Eit Environmental Development or generate 15.45% 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. Eit Environmental Development
Performance |
| Timeline |
| Jiangxi JDL Environmental |
| Eit Environmental |
Jiangxi JDL and Eit Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi JDL and Eit Environmental
The main advantage of trading using opposite Jiangxi JDL and Eit Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi JDL position performs unexpectedly, Eit Environmental 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 Eit Environmental will offset losses from the drop in Eit Environmental's long position.| Jiangxi JDL vs. Agricultural Bank of | Jiangxi JDL vs. Industrial and Commercial | Jiangxi JDL vs. Bank of China | Jiangxi JDL vs. PetroChina Co Ltd |
| Eit Environmental vs. Agricultural Bank of | Eit Environmental vs. Industrial and Commercial | Eit Environmental vs. Bank of China | Eit Environmental vs. PetroChina Co Ltd |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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