Correlation Between Jiaozuo Wanfang and Xiandai Investment
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By analyzing existing cross correlation between Jiaozuo Wanfang Aluminum and Xiandai Investment Co, you can compare the effects of market volatilities on Jiaozuo Wanfang and Xiandai Investment 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 Jiaozuo Wanfang with a short position of Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiaozuo Wanfang and Xiandai Investment.
Diversification Opportunities for Jiaozuo Wanfang and Xiandai Investment
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiaozuo and Xiandai is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jiaozuo Wanfang Aluminum and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment and Jiaozuo Wanfang 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 Jiaozuo Wanfang Aluminum are associated (or correlated) with Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Jiaozuo Wanfang i.e., Jiaozuo Wanfang and Xiandai Investment go up and down completely randomly.
Pair Corralation between Jiaozuo Wanfang and Xiandai Investment
Assuming the 90 days trading horizon Jiaozuo Wanfang Aluminum is expected to generate 1.05 times more return on investment than Xiandai Investment. However, Jiaozuo Wanfang is 1.05 times more volatile than Xiandai Investment Co. It trades about -0.02 of its potential returns per unit of risk. Xiandai Investment Co is currently generating about -0.07 per unit of risk. If you would invest 659.00 in Jiaozuo Wanfang Aluminum on September 28, 2024 and sell it today you would lose (7.00) from holding Jiaozuo Wanfang Aluminum or give up 1.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiaozuo Wanfang Aluminum vs. Xiandai Investment Co
Performance |
| Timeline |
| Jiaozuo Wanfang Aluminum |
| Xiandai Investment |
Jiaozuo Wanfang and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiaozuo Wanfang and Xiandai Investment
The main advantage of trading using opposite Jiaozuo Wanfang and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiaozuo Wanfang position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| Jiaozuo Wanfang vs. Digital China Information | Jiaozuo Wanfang vs. Dalian Thermal Power | Jiaozuo Wanfang vs. AVCON Information Tech | Jiaozuo Wanfang vs. Hefei Metalforming Mach |
| Xiandai Investment vs. Agricultural Bank of | Xiandai Investment vs. Industrial and Commercial | Xiandai Investment vs. Bank of China | Xiandai Investment vs. China Construction Bank |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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