Correlation Between Nasdaq and Jinli Group
Can any of the company-specific risk be diversified away by investing in both Nasdaq and Jinli Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Nasdaq and Jinli Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and Jinli Group Holdings, you can compare the effects of market volatilities on Nasdaq and Jinli Group 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 Nasdaq with a short position of Jinli Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Jinli Group.
Diversification Opportunities for Nasdaq and Jinli Group
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nasdaq and Jinli is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Jinli Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinli Group Holdings and Nasdaq 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 Nasdaq Inc are associated (or correlated) with Jinli Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinli Group Holdings has no effect on the direction of Nasdaq i.e., Nasdaq and Jinli Group go up and down completely randomly.
Pair Corralation between Nasdaq and Jinli Group
Given the investment horizon of 90 days Nasdaq Inc is expected to generate 0.74 times more return on investment than Jinli Group. However, Nasdaq Inc is 1.36 times less risky than Jinli Group. It trades about 0.08 of its potential returns per unit of risk. Jinli Group Holdings is currently generating about 0.02 per unit of risk. If you would invest 5,172 in Nasdaq Inc on December 5, 2024 and sell it today you would earn a total of 3,025 from holding Nasdaq Inc or generate 58.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 97.57% |
Values | Daily Returns |
Nasdaq Inc vs. Jinli Group Holdings
Performance |
Timeline |
Nasdaq Inc |
Jinli Group Holdings |
Nasdaq and Jinli Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nasdaq and Jinli Group
The main advantage of trading using opposite Nasdaq and Jinli Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, Jinli Group 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 Jinli Group will offset losses from the drop in Jinli Group's long position.The idea behind Nasdaq Inc and Jinli Group Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Jinli Group vs. Shui Mu International Co | Jinli Group vs. Les Enphants Co | Jinli Group vs. Victory New Materials | Jinli Group vs. Shinih Enterprise Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |