Correlation Between Jinlong Machinery and Hunan Investment
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By analyzing existing cross correlation between Jinlong Machinery Electronic and Hunan Investment Group, you can compare the effects of market volatilities on Jinlong Machinery and Hunan Investment 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 Jinlong Machinery with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinlong Machinery and Hunan Investment.
Diversification Opportunities for Jinlong Machinery and Hunan Investment
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinlong and Hunan is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Jinlong Machinery Electronic and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Jinlong Machinery 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 Jinlong Machinery Electronic are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Jinlong Machinery i.e., Jinlong Machinery and Hunan Investment go up and down completely randomly.
Pair Corralation between Jinlong Machinery and Hunan Investment
Assuming the 90 days trading horizon Jinlong Machinery Electronic is expected to under-perform the Hunan Investment. In addition to that, Jinlong Machinery is 1.63 times more volatile than Hunan Investment Group. It trades about -0.3 of its total potential returns per unit of risk. Hunan Investment Group is currently generating about -0.36 per unit of volatility. If you would invest 598.00 in Hunan Investment Group on October 11, 2024 and sell it today you would lose (100.00) from holding Hunan Investment Group or give up 16.72% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jinlong Machinery Electronic vs. Hunan Investment Group
Performance |
Timeline |
Jinlong Machinery |
Hunan Investment |
Jinlong Machinery and Hunan Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jinlong Machinery and Hunan Investment
The main advantage of trading using opposite Jinlong Machinery and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinlong Machinery position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.Jinlong Machinery vs. Financial Street Holdings | Jinlong Machinery vs. Ping An Insurance | Jinlong Machinery vs. Panda Financial Holding | Jinlong Machinery vs. GRG Banking Equipment |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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