Correlation Between CIMC Vehicles and Jiangxi Naipu
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By analyzing existing cross correlation between CIMC Vehicles Co and Jiangxi Naipu Mining, you can compare the effects of market volatilities on CIMC Vehicles 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 CIMC Vehicles with a short position of Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Jiangxi Naipu.
Diversification Opportunities for CIMC Vehicles and Jiangxi Naipu
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CIMC and Jiangxi is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co 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 CIMC Vehicles 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 CIMC Vehicles Co 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 CIMC Vehicles i.e., CIMC Vehicles and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Jiangxi Naipu
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to under-perform the Jiangxi Naipu. But the stock apears to be less risky and, when comparing its historical volatility, CIMC Vehicles Co is 1.01 times less risky than Jiangxi Naipu. The stock trades about -0.08 of its potential returns per unit of risk. The Jiangxi Naipu Mining is currently generating about 0.11 of returns per unit of risk over similar time horizon. 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 |
CIMC Vehicles Co vs. Jiangxi Naipu Mining
Performance |
Timeline |
CIMC Vehicles |
Jiangxi Naipu Mining |
CIMC Vehicles and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CIMC Vehicles and Jiangxi Naipu
The main advantage of trading using opposite CIMC Vehicles and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles 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.CIMC Vehicles vs. Industrial and Commercial | CIMC Vehicles vs. Agricultural Bank of | CIMC Vehicles vs. China Construction Bank | CIMC Vehicles vs. Bank of China |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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