Correlation Between Jiangnan Mould and Xiangyang Automobile
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By analyzing existing cross correlation between Jiangnan Mould Plastic and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Jiangnan Mould and Xiangyang Automobile 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 Jiangnan Mould with a short position of Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangnan Mould and Xiangyang Automobile.
Diversification Opportunities for Jiangnan Mould and Xiangyang Automobile
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangnan and Xiangyang is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jiangnan Mould Plastic and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile and Jiangnan Mould 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 Jiangnan Mould Plastic are associated (or correlated) with Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Jiangnan Mould i.e., Jiangnan Mould and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Jiangnan Mould and Xiangyang Automobile
Assuming the 90 days trading horizon Jiangnan Mould is expected to generate 1.38 times less return on investment than Xiangyang Automobile. But when comparing it to its historical volatility, Jiangnan Mould Plastic is 1.27 times less risky than Xiangyang Automobile. It trades about 0.19 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 452.00 in Xiangyang Automobile Bearing on September 10, 2024 and sell it today you would earn a total of 256.00 from holding Xiangyang Automobile Bearing or generate 56.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangnan Mould Plastic vs. Xiangyang Automobile Bearing
Performance |
Timeline |
Jiangnan Mould Plastic |
Xiangyang Automobile |
Jiangnan Mould and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangnan Mould and Xiangyang Automobile
The main advantage of trading using opposite Jiangnan Mould and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangnan Mould position performs unexpectedly, Xiangyang Automobile 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile's long position.Jiangnan Mould vs. Uroica Mining Safety | Jiangnan Mould vs. Rising Nonferrous Metals | Jiangnan Mould vs. Yunnan Xiyi Industrial | Jiangnan Mould vs. Shandong Mining Machinery |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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