Correlation Between Beijing Roborock and Jinlong Machinery
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By analyzing existing cross correlation between Beijing Roborock Technology and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Beijing Roborock and Jinlong Machinery 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 Beijing Roborock with a short position of Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and Jinlong Machinery.
Diversification Opportunities for Beijing Roborock and Jinlong Machinery
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Jinlong is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery and Beijing Roborock 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 Beijing Roborock Technology are associated (or correlated) with Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Beijing Roborock i.e., Beijing Roborock and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Beijing Roborock and Jinlong Machinery
Assuming the 90 days trading horizon Beijing Roborock Technology is expected to generate 0.88 times more return on investment than Jinlong Machinery. However, Beijing Roborock Technology is 1.13 times less risky than Jinlong Machinery. It trades about 0.01 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about 0.01 per unit of risk. If you would invest 23,947 in Beijing Roborock Technology on October 25, 2024 and sell it today you would lose (1,029) from holding Beijing Roborock Technology or give up 4.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Roborock Technology vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Beijing Roborock Tec |
| Jinlong Machinery |
Beijing Roborock and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and Jinlong Machinery
The main advantage of trading using opposite Beijing Roborock and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock position performs unexpectedly, Jinlong Machinery 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery's long position.| Beijing Roborock vs. ROPEOK Technology Group | Beijing Roborock vs. Fujian Newland Computer | Beijing Roborock vs. Beijing Seeyon Internet | Beijing Roborock vs. Sichuan Jinshi Technology |
| Jinlong Machinery vs. China State Construction | Jinlong Machinery vs. Poly Real Estate | Jinlong Machinery vs. China Vanke Co | Jinlong Machinery vs. China Merchants Shekou |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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