Correlation Between Jiangxi JDL and Sany Heavy
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By analyzing existing cross correlation between Jiangxi JDL Environmental and Sany Heavy Industry, you can compare the effects of market volatilities on Jiangxi JDL and Sany Heavy 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 Sany Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi JDL and Sany Heavy.
Diversification Opportunities for Jiangxi JDL and Sany Heavy
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Sany is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi JDL Environmental and Sany Heavy Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sany Heavy Industry 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 Sany Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sany Heavy Industry has no effect on the direction of Jiangxi JDL i.e., Jiangxi JDL and Sany Heavy go up and down completely randomly.
Pair Corralation between Jiangxi JDL and Sany Heavy
Assuming the 90 days trading horizon Jiangxi JDL Environmental is expected to generate 1.26 times more return on investment than Sany Heavy. However, Jiangxi JDL is 1.26 times more volatile than Sany Heavy Industry. It trades about 0.11 of its potential returns per unit of risk. Sany Heavy Industry is currently generating about -0.15 per unit of risk. If you would invest 1,140 in Jiangxi JDL Environmental on September 13, 2024 and sell it today you would earn a total of 93.00 from holding Jiangxi JDL Environmental or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi JDL Environmental vs. Sany Heavy Industry
Performance |
| Timeline |
| Jiangxi JDL Environmental |
| Sany Heavy Industry |
Jiangxi JDL and Sany Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi JDL and Sany Heavy
The main advantage of trading using opposite Jiangxi JDL and Sany Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi JDL position performs unexpectedly, Sany Heavy 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 Sany Heavy will offset losses from the drop in Sany Heavy's long position.| Jiangxi JDL vs. Qijing Machinery | Jiangxi JDL vs. Kingclean Electric Co | Jiangxi JDL vs. Gan Yuan Foods | Jiangxi JDL vs. Youyou Foods Co |
| Sany Heavy vs. Beijing Sanyuan Foods | Sany Heavy vs. Jiangxi JDL Environmental | Sany Heavy vs. Sinocat Environmental Technology | Sany Heavy vs. Bengang Steel Plates |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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