Correlation Between Road Environment and Sailun Jinyu
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By analyzing existing cross correlation between Road Environment Technology and Sailun Jinyu Group, you can compare the effects of market volatilities on Road Environment and Sailun Jinyu 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 Road Environment with a short position of Sailun Jinyu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Road Environment and Sailun Jinyu.
Diversification Opportunities for Road Environment and Sailun Jinyu
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Road and Sailun is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Road Environment Technology and Sailun Jinyu Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sailun Jinyu Group and Road Environment 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 Road Environment Technology are associated (or correlated) with Sailun Jinyu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sailun Jinyu Group has no effect on the direction of Road Environment i.e., Road Environment and Sailun Jinyu go up and down completely randomly.
Pair Corralation between Road Environment and Sailun Jinyu
Assuming the 90 days trading horizon Road Environment Technology is expected to under-perform the Sailun Jinyu. In addition to that, Road Environment is 1.4 times more volatile than Sailun Jinyu Group. It trades about -0.01 of its total potential returns per unit of risk. Sailun Jinyu Group is currently generating about 0.01 per unit of volatility. If you would invest 1,512 in Sailun Jinyu Group on December 9, 2024 and sell it today you would lose (1.00) from holding Sailun Jinyu Group or give up 0.07% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Road Environment Technology vs. Sailun Jinyu Group
Performance |
Timeline |
Road Environment Tec |
Sailun Jinyu Group |
Road Environment and Sailun Jinyu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Road Environment and Sailun Jinyu
The main advantage of trading using opposite Road Environment and Sailun Jinyu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Road Environment position performs unexpectedly, Sailun Jinyu 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 Sailun Jinyu will offset losses from the drop in Sailun Jinyu's long position.Road Environment vs. Impulse Qingdao Health | Road Environment vs. CICC Fund Management | Road Environment vs. Jinhui Mining Co | Road Environment vs. Dezhan HealthCare Co |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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