Correlation Between Jiangxi Naipu and Guangzhou Haige
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Guangzhou Haige Communications, you can compare the effects of market volatilities on Jiangxi Naipu and Guangzhou Haige 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 Naipu with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Guangzhou Haige.
Diversification Opportunities for Jiangxi Naipu and Guangzhou Haige
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Guangzhou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm and Jiangxi Naipu 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 Naipu Mining are associated (or correlated) with Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Guangzhou Haige
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to generate 1.0 times more return on investment than Guangzhou Haige. However, Jiangxi Naipu is 1.0 times more volatile than Guangzhou Haige Communications. It trades about 0.06 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.05 per unit of risk. If you would invest 2,444 in Jiangxi Naipu Mining on September 25, 2024 and sell it today you would earn a total of 456.00 from holding Jiangxi Naipu Mining or generate 18.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangxi Naipu Mining vs. Guangzhou Haige Communications
Performance |
Timeline |
Jiangxi Naipu Mining |
Guangzhou Haige Comm |
Jiangxi Naipu and Guangzhou Haige Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangxi Naipu and Guangzhou Haige
The main advantage of trading using opposite Jiangxi Naipu and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, Guangzhou Haige 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 Guangzhou Haige will offset losses from the drop in Guangzhou Haige's long position.Jiangxi Naipu vs. Industrial and Commercial | Jiangxi Naipu vs. Agricultural Bank of | Jiangxi Naipu vs. China Construction Bank | Jiangxi Naipu vs. Bank of China |
Guangzhou Haige vs. Industrial and Commercial | Guangzhou Haige vs. Agricultural Bank of | Guangzhou Haige vs. China Construction Bank | Guangzhou Haige 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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