Correlation Between Jiangxi Selon and Jiaozuo Wanfang
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By analyzing existing cross correlation between Jiangxi Selon Industrial and Jiaozuo Wanfang Aluminum, you can compare the effects of market volatilities on Jiangxi Selon and Jiaozuo Wanfang 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 Selon with a short position of Jiaozuo Wanfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Selon and Jiaozuo Wanfang.
Diversification Opportunities for Jiangxi Selon and Jiaozuo Wanfang
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangxi and Jiaozuo is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Selon Industrial and Jiaozuo Wanfang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiaozuo Wanfang Aluminum and Jiangxi Selon 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 Selon Industrial are associated (or correlated) with Jiaozuo Wanfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiaozuo Wanfang Aluminum has no effect on the direction of Jiangxi Selon i.e., Jiangxi Selon and Jiaozuo Wanfang go up and down completely randomly.
Pair Corralation between Jiangxi Selon and Jiaozuo Wanfang
Assuming the 90 days trading horizon Jiangxi Selon is expected to generate 1.49 times less return on investment than Jiaozuo Wanfang. But when comparing it to its historical volatility, Jiangxi Selon Industrial is 1.65 times less risky than Jiaozuo Wanfang. It trades about 0.17 of its potential returns per unit of risk. Jiaozuo Wanfang Aluminum is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 511.00 in Jiaozuo Wanfang Aluminum on September 6, 2024 and sell it today you would earn a total of 162.00 from holding Jiaozuo Wanfang Aluminum or generate 31.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangxi Selon Industrial vs. Jiaozuo Wanfang Aluminum
Performance |
Timeline |
Jiangxi Selon Industrial |
Jiaozuo Wanfang Aluminum |
Jiangxi Selon and Jiaozuo Wanfang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangxi Selon and Jiaozuo Wanfang
The main advantage of trading using opposite Jiangxi Selon and Jiaozuo Wanfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Selon position performs unexpectedly, Jiaozuo Wanfang 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 Jiaozuo Wanfang will offset losses from the drop in Jiaozuo Wanfang's long position.Jiangxi Selon vs. Zijin Mining Group | Jiangxi Selon vs. Wanhua Chemical Group | Jiangxi Selon vs. Baoshan Iron Steel | Jiangxi Selon vs. Rongsheng Petrochemical Co |
Jiaozuo Wanfang vs. Shaanxi Energy Investment | Jiaozuo Wanfang vs. Nuode Investment Co | Jiaozuo Wanfang vs. Zhongrun Resources Investment | Jiaozuo Wanfang vs. Shenzhen Centralcon 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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