Correlation Between JCET Group and Zoomlion Heavy
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By analyzing existing cross correlation between JCET Group Co and Zoomlion Heavy Industry, you can compare the effects of market volatilities on JCET Group and Zoomlion Heavy 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 JCET Group with a short position of Zoomlion Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCET Group and Zoomlion Heavy.
Diversification Opportunities for JCET Group and Zoomlion Heavy
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JCET and Zoomlion is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding JCET Group Co and Zoomlion Heavy Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoomlion Heavy Industry and JCET Group 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 JCET Group Co are associated (or correlated) with Zoomlion Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoomlion Heavy Industry has no effect on the direction of JCET Group i.e., JCET Group and Zoomlion Heavy go up and down completely randomly.
Pair Corralation between JCET Group and Zoomlion Heavy
Assuming the 90 days trading horizon JCET Group Co is expected to generate 1.39 times more return on investment than Zoomlion Heavy. However, JCET Group is 1.39 times more volatile than Zoomlion Heavy Industry. It trades about 0.18 of its potential returns per unit of risk. Zoomlion Heavy Industry is currently generating about 0.07 per unit of risk. If you would invest 2,900 in JCET Group Co on September 24, 2024 and sell it today you would earn a total of 1,098 from holding JCET Group Co or generate 37.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
JCET Group Co vs. Zoomlion Heavy Industry
Performance |
Timeline |
JCET Group |
Zoomlion Heavy Industry |
JCET Group and Zoomlion Heavy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JCET Group and Zoomlion Heavy
The main advantage of trading using opposite JCET Group and Zoomlion Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCET Group position performs unexpectedly, Zoomlion Heavy 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 Zoomlion Heavy will offset losses from the drop in Zoomlion Heavy's long position.JCET Group vs. Ming Yang Smart | JCET Group vs. 159681 | JCET Group vs. 159005 | JCET Group vs. Loctek Ergonomic Technology |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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