Correlation Between Guangdong Jingyi and Jiangxi Naipu
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Guangdong Jingyi and Jiangxi Naipu 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 Guangdong Jingyi with a short position of Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Jiangxi Naipu.
Diversification Opportunities for Guangdong Jingyi and Jiangxi Naipu
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Jiangxi is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Jiangxi Naipu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Naipu Mining and Guangdong Jingyi 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 Guangdong Jingyi Metal are associated (or correlated) with Jiangxi Naipu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Naipu Mining has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Jiangxi Naipu
Assuming the 90 days trading horizon Guangdong Jingyi is expected to generate 4.42 times less return on investment than Jiangxi Naipu. But when comparing it to its historical volatility, Guangdong Jingyi Metal is 1.01 times less risky than Jiangxi Naipu. It trades about 0.02 of its potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,426 in Jiangxi Naipu Mining on September 26, 2024 and sell it today you would earn a total of 1,505 from holding Jiangxi Naipu Mining or generate 105.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Jingyi Metal vs. Jiangxi Naipu Mining
Performance |
Timeline |
Guangdong Jingyi Metal |
Jiangxi Naipu Mining |
Guangdong Jingyi and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Jingyi and Jiangxi Naipu
The main advantage of trading using opposite Guangdong Jingyi and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Jiangxi Naipu 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 Jiangxi Naipu will offset losses from the drop in Jiangxi Naipu's long position.Guangdong Jingyi vs. Guangzhou Jinyi Media | Guangdong Jingyi vs. Heilongjiang Publishing Media | Guangdong Jingyi vs. Dook Media Group | Guangdong Jingyi vs. GRIPM Advanced Materials |
Jiangxi Naipu vs. Guangdong Jingyi Metal | Jiangxi Naipu vs. Harbin Hatou Investment | Jiangxi Naipu vs. Zoje Resources Investment | Jiangxi Naipu vs. Chengdu Xingrong 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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