Correlation Between Central Plains and Jiangxi JDL
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By analyzing existing cross correlation between Central Plains Environment and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Central Plains and Jiangxi JDL 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 Central Plains with a short position of Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Plains and Jiangxi JDL.
Diversification Opportunities for Central Plains and Jiangxi JDL
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Central and Jiangxi is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Central Plains Environment and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental and Central Plains 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 Central Plains Environment are associated (or correlated) with Jiangxi JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of Central Plains i.e., Central Plains and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Central Plains and Jiangxi JDL
Assuming the 90 days trading horizon Central Plains Environment is expected to under-perform the Jiangxi JDL. But the stock apears to be less risky and, when comparing its historical volatility, Central Plains Environment is 1.27 times less risky than Jiangxi JDL. The stock trades about -0.14 of its potential returns per unit of risk. The Jiangxi JDL Environmental is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,228 in Jiangxi JDL Environmental on September 13, 2024 and sell it today you would earn a total of 20.00 from holding Jiangxi JDL Environmental or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central Plains Environment vs. Jiangxi JDL Environmental
Performance |
| Timeline |
| Central Plains Envir |
| Jiangxi JDL Environmental |
Central Plains and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Plains and Jiangxi JDL
The main advantage of trading using opposite Central Plains and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Plains position performs unexpectedly, Jiangxi JDL 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 JDL will offset losses from the drop in Jiangxi JDL's long position.| Central Plains vs. Lutian Machinery Co | Central Plains vs. China Longyuan Power | Central Plains vs. PetroChina Co Ltd | Central Plains vs. Bank of China |
| Jiangxi JDL vs. Lutian Machinery Co | Jiangxi JDL vs. China Longyuan Power | Jiangxi JDL vs. PetroChina Co Ltd | Jiangxi JDL 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 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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