Correlation Between Road Environment and Jiangsu Xinri
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By analyzing existing cross correlation between Road Environment Technology and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Road Environment and Jiangsu Xinri 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 Road Environment with a short position of Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Road Environment and Jiangsu Xinri.
Diversification Opportunities for Road Environment and Jiangsu Xinri
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Road and Jiangsu is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Road Environment Technology and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E and Road Environment 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 Road Environment Technology are associated (or correlated) with Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Road Environment i.e., Road Environment and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Road Environment and Jiangsu Xinri
Assuming the 90 days trading horizon Road Environment is expected to generate 3.53 times less return on investment than Jiangsu Xinri. In addition to that, Road Environment is 1.23 times more volatile than Jiangsu Xinri E Vehicle. It trades about 0.02 of its total potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about 0.1 per unit of volatility. If you would invest 1,055 in Jiangsu Xinri E Vehicle on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Jiangsu Xinri E Vehicle or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Road Environment Technology vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Road Environment Tec |
| Jiangsu Xinri E |
Road Environment and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Road Environment and Jiangsu Xinri
The main advantage of trading using opposite Road Environment and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Road Environment position performs unexpectedly, Jiangsu Xinri 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 Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Road Environment vs. Lutian Machinery Co | Road Environment vs. China Longyuan Power | Road Environment vs. PetroChina Co Ltd | Road Environment vs. Bank of China |
| Jiangsu Xinri vs. Dawning Information Industry | Jiangsu Xinri vs. Ye Chiu Metal | Jiangsu Xinri vs. State Grid InformationCommunication | Jiangsu Xinri vs. Offshore Oil Engineering |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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