Correlation Between Jiangxi Selon and Lonkey Industrial
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By analyzing existing cross correlation between Jiangxi Selon Industrial and Lonkey Industrial Co, you can compare the effects of market volatilities on Jiangxi Selon and Lonkey Industrial 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 Jiangxi Selon with a short position of Lonkey Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Selon and Lonkey Industrial.
Diversification Opportunities for Jiangxi Selon and Lonkey Industrial
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Lonkey is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Selon Industrial and Lonkey Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lonkey Industrial and Jiangxi Selon 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 Jiangxi Selon Industrial are associated (or correlated) with Lonkey Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lonkey Industrial has no effect on the direction of Jiangxi Selon i.e., Jiangxi Selon and Lonkey Industrial go up and down completely randomly.
Pair Corralation between Jiangxi Selon and Lonkey Industrial
Assuming the 90 days trading horizon Jiangxi Selon Industrial is expected to generate 0.71 times more return on investment than Lonkey Industrial. However, Jiangxi Selon Industrial is 1.41 times less risky than Lonkey Industrial. It trades about 0.22 of its potential returns per unit of risk. Lonkey Industrial Co is currently generating about 0.12 per unit of risk. If you would invest 567.00 in Jiangxi Selon Industrial on September 25, 2024 and sell it today you would earn a total of 190.00 from holding Jiangxi Selon Industrial or generate 33.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangxi Selon Industrial vs. Lonkey Industrial Co
Performance |
Timeline |
Jiangxi Selon Industrial |
Lonkey Industrial |
Jiangxi Selon and Lonkey Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangxi Selon and Lonkey Industrial
The main advantage of trading using opposite Jiangxi Selon and Lonkey Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Selon position performs unexpectedly, Lonkey Industrial 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 Lonkey Industrial will offset losses from the drop in Lonkey Industrial's long position.Jiangxi Selon vs. Tongyu Communication | Jiangxi Selon vs. Guangzhou Haige Communications | Jiangxi Selon vs. Xinjiang Communications Construction | Jiangxi Selon vs. Zhongtong Guomai Communication |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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