Correlation Between Jadard Technology and Longxing Chemical
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By analyzing existing cross correlation between Jadard Technology A and Longxing Chemical Stock, you can compare the effects of market volatilities on Jadard Technology and Longxing Chemical 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 Jadard Technology with a short position of Longxing Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jadard Technology and Longxing Chemical.
Diversification Opportunities for Jadard Technology and Longxing Chemical
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jadard and Longxing is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jadard Technology A and Longxing Chemical Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longxing Chemical Stock and Jadard Technology 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 Jadard Technology A are associated (or correlated) with Longxing Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longxing Chemical Stock has no effect on the direction of Jadard Technology i.e., Jadard Technology and Longxing Chemical go up and down completely randomly.
Pair Corralation between Jadard Technology and Longxing Chemical
Assuming the 90 days trading horizon Jadard Technology A is expected to generate 2.13 times more return on investment than Longxing Chemical. However, Jadard Technology is 2.13 times more volatile than Longxing Chemical Stock. It trades about 0.12 of its potential returns per unit of risk. Longxing Chemical Stock is currently generating about 0.1 per unit of risk. If you would invest 1,311 in Jadard Technology A on September 3, 2024 and sell it today you would earn a total of 986.00 from holding Jadard Technology A or generate 75.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jadard Technology A vs. Longxing Chemical Stock
Performance |
| Timeline |
| Jadard Technology |
| Longxing Chemical Stock |
Jadard Technology and Longxing Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jadard Technology and Longxing Chemical
The main advantage of trading using opposite Jadard Technology and Longxing Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jadard Technology position performs unexpectedly, Longxing Chemical 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 Longxing Chemical will offset losses from the drop in Longxing Chemical's long position.| Jadard Technology vs. Guilin Seamild Foods | Jadard Technology vs. Fujian Anjoy Foods | Jadard Technology vs. Shantou Wanshun Package | Jadard Technology vs. Shanghai Ziyan Foods |
| Longxing Chemical vs. Guangdong Liantai Environmental | Longxing Chemical vs. Hengli Industrial Development | Longxing Chemical vs. Lingyuan Iron Steel | Longxing Chemical vs. Dongjiang Environmental Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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