Correlation Between Jiangsu Xinri and Zhejiang Kingland
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By analyzing existing cross correlation between Jiangsu Xinri E Vehicle and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Jiangsu Xinri and Zhejiang Kingland 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 Xinri with a short position of Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinri and Zhejiang Kingland.
Diversification Opportunities for Jiangsu Xinri and Zhejiang Kingland
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Zhejiang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinri E Vehicle and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland and Jiangsu Xinri 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 Xinri E Vehicle are associated (or correlated) with Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Jiangsu Xinri i.e., Jiangsu Xinri and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Jiangsu Xinri and Zhejiang Kingland
Assuming the 90 days trading horizon Jiangsu Xinri is expected to generate 1.53 times less return on investment than Zhejiang Kingland. In addition to that, Jiangsu Xinri is 1.02 times more volatile than Zhejiang Kingland Pipeline. It trades about 0.09 of its total potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about 0.14 per unit of volatility. 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 | 98.28% |
Values | Daily Returns |
Jiangsu Xinri E Vehicle vs. Zhejiang Kingland Pipeline
Performance |
Timeline |
Jiangsu Xinri E |
Zhejiang Kingland |
Jiangsu Xinri and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Xinri and Zhejiang Kingland
The main advantage of trading using opposite Jiangsu Xinri and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinri position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland's long position.Jiangsu Xinri vs. Shandong Publishing Media | Jiangsu Xinri vs. Shuhua Sports Co | Jiangsu Xinri vs. Lander Sports Development | Jiangsu Xinri vs. Rising Nonferrous Metals |
Zhejiang Kingland vs. Zijin Mining Group | Zhejiang Kingland vs. Jiajia Food Group | Zhejiang Kingland vs. New Hope Dairy | Zhejiang Kingland vs. Xiwang Foodstuffs 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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