Correlation Between Zhejiang Kingland and Jiangsu Xinri
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Zhejiang Kingland 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 Zhejiang Kingland with a short position of Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Jiangsu Xinri.
Diversification Opportunities for Zhejiang Kingland and Jiangsu Xinri
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Jiangsu is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline 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 Zhejiang Kingland 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 Zhejiang Kingland Pipeline 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 Zhejiang Kingland i.e., Zhejiang Kingland and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Jiangsu Xinri
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to generate 0.98 times more return on investment than Jiangsu Xinri. However, Zhejiang Kingland Pipeline is 1.02 times less risky than Jiangsu Xinri. It trades about 0.14 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about 0.09 per unit of risk. If you would invest 521.00 in Zhejiang Kingland Pipeline on September 6, 2024 and sell it today you would earn a total of 111.00 from holding Zhejiang Kingland Pipeline or generate 21.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Jiangsu Xinri E Vehicle
Performance |
Timeline |
Zhejiang Kingland |
Jiangsu Xinri E |
Zhejiang Kingland and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang Kingland and Jiangsu Xinri
The main advantage of trading using opposite Zhejiang Kingland and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland 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.Zhejiang Kingland vs. Zijin Mining Group | Zhejiang Kingland vs. Jiajia Food Group | Zhejiang Kingland vs. New Hope Dairy | Zhejiang Kingland vs. Xiwang Foodstuffs Co |
Jiangsu Xinri vs. Shandong Publishing Media | Jiangsu Xinri vs. Shuhua Sports Co | Jiangsu Xinri vs. Lander Sports Development | Jiangsu Xinri vs. Rising Nonferrous Metals |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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