Correlation Between Jiangxi Naipu and China Aluminum
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By analyzing existing cross correlation between Jiangxi Naipu Mining and China Aluminum International, you can compare the effects of market volatilities on Jiangxi Naipu and China Aluminum 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 China Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and China Aluminum.
Diversification Opportunities for Jiangxi Naipu and China Aluminum
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and China is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and China Aluminum International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aluminum Inter 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 China Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aluminum Inter has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and China Aluminum go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and China Aluminum
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to generate 1.15 times more return on investment than China Aluminum. However, Jiangxi Naipu is 1.15 times more volatile than China Aluminum International. It trades about 0.04 of its potential returns per unit of risk. China Aluminum International is currently generating about 0.01 per unit of risk. If you would invest 2,361 in Jiangxi Naipu Mining on September 25, 2024 and sell it today you would earn a total of 539.00 from holding Jiangxi Naipu Mining or generate 22.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangxi Naipu Mining vs. China Aluminum International
Performance |
Timeline |
Jiangxi Naipu Mining |
China Aluminum Inter |
Jiangxi Naipu and China Aluminum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangxi Naipu and China Aluminum
The main advantage of trading using opposite Jiangxi Naipu and China Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, China Aluminum 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 China Aluminum will offset losses from the drop in China Aluminum'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 |
China Aluminum vs. Jiangxi Hengda Hi Tech | China Aluminum vs. Jiangxi Naipu Mining | China Aluminum vs. Zijin Mining Group | China Aluminum vs. Zhejiang JIULI Hi tech |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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