Correlation Between Cardano and Jinlong Machinery
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By analyzing existing cross correlation between Cardano and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Cardano 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 Cardano with a short position of Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardano and Jinlong Machinery.
Diversification Opportunities for Cardano and Jinlong Machinery
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cardano and Jinlong is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Cardano and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery and Cardano 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 Cardano 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 Cardano i.e., Cardano and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Cardano and Jinlong Machinery
Assuming the 90 days trading horizon Cardano is expected to generate 1.7 times more return on investment than Jinlong Machinery. However, Cardano is 1.7 times more volatile than Jinlong Machinery Electronic. It trades about -0.07 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about -0.3 per unit of risk. If you would invest 109.00 in Cardano on October 11, 2024 and sell it today you would lose (14.00) from holding Cardano or give up 12.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cardano vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Cardano |
| Jinlong Machinery |
Cardano and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardano and Jinlong Machinery
The main advantage of trading using opposite Cardano and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardano 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.The idea behind Cardano and Jinlong Machinery Electronic pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Jinlong Machinery vs. Financial Street Holdings | Jinlong Machinery vs. Ping An Insurance | Jinlong Machinery vs. Panda Financial Holding | Jinlong Machinery vs. GRG Banking Equipment |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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