Correlation Between Jiaozuo Wanfang and Eastern Communications
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By analyzing existing cross correlation between Jiaozuo Wanfang Aluminum and Eastern Communications Co, you can compare the effects of market volatilities on Jiaozuo Wanfang and Eastern Communications 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 Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiaozuo Wanfang and Eastern Communications.
Diversification Opportunities for Jiaozuo Wanfang and Eastern Communications
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiaozuo and Eastern is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jiaozuo Wanfang Aluminum and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications 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 Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Jiaozuo Wanfang i.e., Jiaozuo Wanfang and Eastern Communications go up and down completely randomly.
Pair Corralation between Jiaozuo Wanfang and Eastern Communications
Assuming the 90 days trading horizon Jiaozuo Wanfang Aluminum is expected to generate 1.17 times more return on investment than Eastern Communications. However, Jiaozuo Wanfang is 1.17 times more volatile than Eastern Communications Co. It trades about 0.03 of its potential returns per unit of risk. Eastern Communications Co is currently generating about 0.02 per unit of risk. If you would invest 533.00 in Jiaozuo Wanfang Aluminum on September 5, 2024 and sell it today you would earn a total of 148.00 from holding Jiaozuo Wanfang Aluminum or generate 27.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiaozuo Wanfang Aluminum vs. Eastern Communications Co
Performance |
| Timeline |
| Jiaozuo Wanfang Aluminum |
| Eastern Communications |
Jiaozuo Wanfang and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiaozuo Wanfang and Eastern Communications
The main advantage of trading using opposite Jiaozuo Wanfang and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiaozuo Wanfang position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' long position.| Jiaozuo Wanfang vs. Sino Platinum Metals Co | Jiaozuo Wanfang vs. Shandong Mining Machinery | Jiaozuo Wanfang vs. Jiangxi Selon Industrial | Jiaozuo Wanfang vs. Linzhou Heavy Machinery |
| Eastern Communications vs. Jiaozuo Wanfang Aluminum | Eastern Communications vs. ZYF Lopsking Aluminum | Eastern Communications vs. Datang HuaYin Electric | Eastern Communications vs. Guangdong Jingyi Metal |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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