Correlation Between Jiangxi Lianchuang and Industrial
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By analyzing existing cross correlation between Jiangxi Lianchuang Opto electronic and Industrial and Commercial, you can compare the effects of market volatilities on Jiangxi Lianchuang and 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 Lianchuang with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Lianchuang and Industrial.
Diversification Opportunities for Jiangxi Lianchuang and Industrial
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jiangxi and Industrial is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Lianchuang Opto electr and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial and Jiangxi Lianchuang 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 Lianchuang Opto electronic are associated (or correlated) with Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Jiangxi Lianchuang i.e., Jiangxi Lianchuang and Industrial go up and down completely randomly.
Pair Corralation between Jiangxi Lianchuang and Industrial
Assuming the 90 days trading horizon Jiangxi Lianchuang Opto electronic is expected to generate 4.3 times more return on investment than Industrial. However, Jiangxi Lianchuang is 4.3 times more volatile than Industrial and Commercial. It trades about 0.19 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.09 per unit of risk. If you would invest 2,645 in Jiangxi Lianchuang Opto electronic on October 15, 2024 and sell it today you would earn a total of 1,815 from holding Jiangxi Lianchuang Opto electronic or generate 68.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangxi Lianchuang Opto electr vs. Industrial and Commercial
Performance |
Timeline |
Jiangxi Lianchuang Opto |
Industrial and Commercial |
Jiangxi Lianchuang and Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangxi Lianchuang and Industrial
The main advantage of trading using opposite Jiangxi Lianchuang and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Lianchuang position performs unexpectedly, 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 Industrial will offset losses from the drop in Industrial's long position.Jiangxi Lianchuang vs. Orinko Advanced Plastics | Jiangxi Lianchuang vs. Guangzhou Haige Communications | Jiangxi Lianchuang vs. Guangzhou Tinci Materials | Jiangxi Lianchuang vs. Hangzhou Gaoxin Rubber |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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