Correlation Between Hangzhou Xili and Jiangsu Xinri
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By analyzing existing cross correlation between Hangzhou Xili Intelligent and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Hangzhou Xili 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 Hangzhou Xili with a short position of Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Xili and Jiangsu Xinri.
Diversification Opportunities for Hangzhou Xili and Jiangsu Xinri
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Jiangsu is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Xili Intelligent 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 Hangzhou Xili 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 Hangzhou Xili Intelligent 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 Hangzhou Xili i.e., Hangzhou Xili and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Hangzhou Xili and Jiangsu Xinri
Assuming the 90 days trading horizon Hangzhou Xili is expected to generate 18.44 times less return on investment than Jiangsu Xinri. In addition to that, Hangzhou Xili is 1.17 times more volatile than Jiangsu Xinri E Vehicle. It trades about 0.01 of its total potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about 0.13 per unit of volatility. If you would invest 1,111 in Jiangsu Xinri E Vehicle on September 13, 2024 and sell it today you would earn a total of 57.00 from holding Jiangsu Xinri E Vehicle or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hangzhou Xili Intelligent vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Hangzhou Xili Intelligent |
| Jiangsu Xinri E |
Hangzhou Xili and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Xili and Jiangsu Xinri
The main advantage of trading using opposite Hangzhou Xili and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Xili 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.| Hangzhou Xili vs. Industrial and Commercial | Hangzhou Xili vs. Agricultural Bank of | Hangzhou Xili vs. China Construction Bank | Hangzhou Xili vs. Bank of China |
| Jiangsu Xinri vs. Lutian Machinery Co | Jiangsu Xinri vs. China Longyuan Power | Jiangsu Xinri vs. PetroChina Co Ltd | Jiangsu Xinri vs. Bank of China |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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