Correlation Between Jiangsu Yueda and Zhejiang Longsheng
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Zhejiang Longsheng Group, you can compare the effects of market volatilities on Jiangsu Yueda and Zhejiang Longsheng 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 Yueda with a short position of Zhejiang Longsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Zhejiang Longsheng.
Diversification Opportunities for Jiangsu Yueda and Zhejiang Longsheng
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Zhejiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Zhejiang Longsheng Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Longsheng and Jiangsu Yueda 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 Yueda Investment are associated (or correlated) with Zhejiang Longsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Longsheng has no effect on the direction of Jiangsu Yueda i.e., Jiangsu Yueda and Zhejiang Longsheng go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Zhejiang Longsheng
Assuming the 90 days trading horizon Jiangsu Yueda Investment is expected to generate 1.85 times more return on investment than Zhejiang Longsheng. However, Jiangsu Yueda is 1.85 times more volatile than Zhejiang Longsheng Group. It trades about 0.02 of its potential returns per unit of risk. Zhejiang Longsheng Group is currently generating about 0.02 per unit of risk. If you would invest 434.00 in Jiangsu Yueda Investment on September 23, 2024 and sell it today you would earn a total of 40.00 from holding Jiangsu Yueda Investment or generate 9.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Yueda Investment vs. Zhejiang Longsheng Group
Performance |
Timeline |
Jiangsu Yueda Investment |
Zhejiang Longsheng |
Jiangsu Yueda and Zhejiang Longsheng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Yueda and Zhejiang Longsheng
The main advantage of trading using opposite Jiangsu Yueda and Zhejiang Longsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda position performs unexpectedly, Zhejiang Longsheng 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 Longsheng will offset losses from the drop in Zhejiang Longsheng's long position.Jiangsu Yueda vs. Ming Yang Smart | Jiangsu Yueda vs. 159681 | Jiangsu Yueda vs. 159005 | Jiangsu Yueda vs. Loctek Ergonomic Technology |
Zhejiang Longsheng vs. Air China Ltd | Zhejiang Longsheng vs. Tieling Newcity Investment | Zhejiang Longsheng vs. Zhongrun Resources Investment | Zhejiang Longsheng vs. Jiangsu Yueda Investment |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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