Correlation Between Jiangxi Hengda and Jiangxi Naipu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Jiangxi Hengda 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 Jiangxi Hengda with a short position of Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Jiangxi Naipu.
Diversification Opportunities for Jiangxi Hengda and Jiangxi Naipu
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Jiangxi is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech 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 Jiangxi Hengda 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 Hengda Hi Tech 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 Jiangxi Hengda i.e., Jiangxi Hengda and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Jiangxi Naipu
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to generate 0.99 times more return on investment than Jiangxi Naipu. However, Jiangxi Hengda Hi Tech is 1.01 times less risky than Jiangxi Naipu. It trades about 0.12 of its potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about 0.06 per unit of risk. If you would invest 370.00 in Jiangxi Hengda Hi Tech on September 25, 2024 and sell it today you would earn a total of 166.00 from holding Jiangxi Hengda Hi Tech or generate 44.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. Jiangxi Naipu Mining
Performance |
Timeline |
Jiangxi Hengda Hi |
Jiangxi Naipu Mining |
Jiangxi Hengda and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangxi Hengda and Jiangxi Naipu
The main advantage of trading using opposite Jiangxi Hengda and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda 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.Jiangxi Hengda vs. Zijin Mining Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda vs. Shandong Gold Mining | Jiangxi Hengda vs. Rongsheng Petrochemical Co |
Jiangxi Naipu vs. Industrial and Commercial | Jiangxi Naipu vs. Agricultural Bank of | Jiangxi Naipu vs. China Construction Bank | Jiangxi Naipu vs. Bank of China |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Transaction History View history of all your transactions and understand their impact on performance | |
Bonds Directory Find actively traded corporate debentures issued by US companies |