Correlation Between North Huajin and Jiangsu Xinning
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By analyzing existing cross correlation between North Huajin Chemical and Jiangsu Xinning Modern, you can compare the effects of market volatilities on North Huajin and Jiangsu Xinning 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 North Huajin with a short position of Jiangsu Xinning. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Huajin and Jiangsu Xinning.
Diversification Opportunities for North Huajin and Jiangsu Xinning
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between North and Jiangsu is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding North Huajin Chemical and Jiangsu Xinning Modern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinning Modern and North Huajin 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 North Huajin Chemical are associated (or correlated) with Jiangsu Xinning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinning Modern has no effect on the direction of North Huajin i.e., North Huajin and Jiangsu Xinning go up and down completely randomly.
Pair Corralation between North Huajin and Jiangsu Xinning
Assuming the 90 days trading horizon North Huajin Chemical is expected to under-perform the Jiangsu Xinning. But the stock apears to be less risky and, when comparing its historical volatility, North Huajin Chemical is 1.11 times less risky than Jiangsu Xinning. The stock trades about -0.01 of its potential returns per unit of risk. The Jiangsu Xinning Modern is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 353.00 in Jiangsu Xinning Modern on August 31, 2024 and sell it today you would earn a total of 35.00 from holding Jiangsu Xinning Modern or generate 9.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Huajin Chemical vs. Jiangsu Xinning Modern
Performance |
| Timeline |
| North Huajin Chemical |
| Jiangsu Xinning Modern |
North Huajin and Jiangsu Xinning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Huajin and Jiangsu Xinning
The main advantage of trading using opposite North Huajin and Jiangsu Xinning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Huajin position performs unexpectedly, Jiangsu Xinning 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 Jiangsu Xinning will offset losses from the drop in Jiangsu Xinning's long position.| North Huajin vs. Chengtun Mining Group | North Huajin vs. Suzhou Weizhixiang Food | North Huajin vs. Western Metal Materials | North Huajin vs. Minmetals Capital Co |
| Jiangsu Xinning vs. Dongfeng Automobile Co | Jiangsu Xinning vs. Fiberhome Telecommunication Technologies | Jiangsu Xinning vs. Yingde Greatchem Chemicals | Jiangsu Xinning vs. Guangzhou Haige Communications |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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