Correlation Between Jiangxi Naipu and CIMC Vehicles
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By analyzing existing cross correlation between Jiangxi Naipu Mining and CIMC Vehicles Co, you can compare the effects of market volatilities on Jiangxi Naipu and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and CIMC Vehicles.
Diversification Opportunities for Jiangxi Naipu and CIMC Vehicles
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and CIMC is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and CIMC Vehicles
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to generate 1.01 times more return on investment than CIMC Vehicles. However, Jiangxi Naipu is 1.01 times more volatile than CIMC Vehicles Co. It trades about 0.11 of its potential returns per unit of risk. CIMC Vehicles Co is currently generating about -0.08 per unit of risk. If you would invest 2,841 in Jiangxi Naipu Mining on September 26, 2024 and sell it today you would earn a total of 90.00 from holding Jiangxi Naipu Mining or generate 3.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangxi Naipu Mining vs. CIMC Vehicles Co
Performance |
Timeline |
Jiangxi Naipu Mining |
CIMC Vehicles |
Jiangxi Naipu and CIMC Vehicles Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangxi Naipu and CIMC Vehicles
The main advantage of trading using opposite Jiangxi Naipu and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' long position.Jiangxi Naipu vs. Guangdong Jingyi Metal | Jiangxi Naipu vs. Harbin Hatou Investment | Jiangxi Naipu vs. Zoje Resources Investment | Jiangxi Naipu vs. Chengdu Xingrong Investment |
CIMC Vehicles vs. Industrial and Commercial | CIMC Vehicles vs. Agricultural Bank of | CIMC Vehicles vs. China Construction Bank | CIMC Vehicles 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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