Correlation Between Jiangsu Yanghe and Xinya Electronic
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Xinya Electronic Co, you can compare the effects of market volatilities on Jiangsu Yanghe and Xinya Electronic 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 Jiangsu Yanghe with a short position of Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Xinya Electronic.
Diversification Opportunities for Jiangsu Yanghe and Xinya Electronic
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Xinya is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic and Jiangsu Yanghe 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 Jiangsu Yanghe Brewery are associated (or correlated) with Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Jiangsu Yanghe i.e., Jiangsu Yanghe and Xinya Electronic go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Xinya Electronic
Assuming the 90 days trading horizon Jiangsu Yanghe is expected to generate 2.91 times less return on investment than Xinya Electronic. But when comparing it to its historical volatility, Jiangsu Yanghe Brewery is 1.0 times less risky than Xinya Electronic. It trades about 0.05 of its potential returns per unit of risk. Xinya Electronic Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,175 in Xinya Electronic Co on September 25, 2024 and sell it today you would earn a total of 321.00 from holding Xinya Electronic Co or generate 27.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Xinya Electronic Co
Performance |
Timeline |
Jiangsu Yanghe Brewery |
Xinya Electronic |
Jiangsu Yanghe and Xinya Electronic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Yanghe and Xinya Electronic
The main advantage of trading using opposite Jiangsu Yanghe and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.Jiangsu Yanghe vs. Talkweb Information System | Jiangsu Yanghe vs. Jinhui Liquor Co | Jiangsu Yanghe vs. Focus Media Information | Jiangsu Yanghe vs. Caihong Display Devices |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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