Correlation Between Jiangxi Naipu and Ziel Home
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Ziel Home Furnishing, you can compare the effects of market volatilities on Jiangxi Naipu and Ziel Home 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 Ziel Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Ziel Home.
Diversification Opportunities for Jiangxi Naipu and Ziel Home
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Ziel is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and Ziel Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziel Home Furnishing 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 Ziel Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziel Home Furnishing has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and Ziel Home go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Ziel Home
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to under-perform the Ziel Home. But the stock apears to be less risky and, when comparing its historical volatility, Jiangxi Naipu Mining is 1.4 times less risky than Ziel Home. The stock trades about -0.1 of its potential returns per unit of risk. The Ziel Home Furnishing is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,973 in Ziel Home Furnishing on November 20, 2024 and sell it today you would lose (83.00) from holding Ziel Home Furnishing or give up 4.21% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangxi Naipu Mining vs. Ziel Home Furnishing
Performance |
Timeline |
Jiangxi Naipu Mining |
Ziel Home Furnishing |
Jiangxi Naipu and Ziel Home Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangxi Naipu and Ziel Home
The main advantage of trading using opposite Jiangxi Naipu and Ziel Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, Ziel Home 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 Ziel Home will offset losses from the drop in Ziel Home's long position.Jiangxi Naipu vs. Mengtian Home Group | ||
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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