Correlation Between Jiangnan Mould and Farsoon Technology
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By analyzing existing cross correlation between Jiangnan Mould Plastic and Farsoon Technology Co, you can compare the effects of market volatilities on Jiangnan Mould and Farsoon Technology 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 Farsoon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangnan Mould and Farsoon Technology.
Diversification Opportunities for Jiangnan Mould and Farsoon Technology
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangnan and Farsoon is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jiangnan Mould Plastic and Farsoon Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farsoon Technology 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 Farsoon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farsoon Technology has no effect on the direction of Jiangnan Mould i.e., Jiangnan Mould and Farsoon Technology go up and down completely randomly.
Pair Corralation between Jiangnan Mould and Farsoon Technology
Assuming the 90 days trading horizon Jiangnan Mould Plastic is expected to generate 0.75 times more return on investment than Farsoon Technology. However, Jiangnan Mould Plastic is 1.33 times less risky than Farsoon Technology. It trades about 0.04 of its potential returns per unit of risk. Farsoon Technology Co is currently generating about 0.0 per unit of risk. If you would invest 493.00 in Jiangnan Mould Plastic on October 10, 2024 and sell it today you would earn a total of 184.00 from holding Jiangnan Mould Plastic or generate 37.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 88.24% |
Values | Daily Returns |
Jiangnan Mould Plastic vs. Farsoon Technology Co
Performance |
Timeline |
Jiangnan Mould Plastic |
Farsoon Technology |
Jiangnan Mould and Farsoon Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangnan Mould and Farsoon Technology
The main advantage of trading using opposite Jiangnan Mould and Farsoon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangnan Mould position performs unexpectedly, Farsoon Technology 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 Farsoon Technology will offset losses from the drop in Farsoon Technology's long position.Jiangnan Mould vs. Guangxi Wuzhou Communications | Jiangnan Mould vs. Iat Automobile Technology | Jiangnan Mould vs. Cowealth Medical China | Jiangnan Mould vs. Fibocom Wireless |
Farsoon Technology vs. Ningxia Building Materials | Farsoon Technology vs. Jiangnan Mould Plastic | Farsoon Technology vs. Kangxin New Materials | Farsoon Technology vs. Orinko Advanced Plastics |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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