Correlation Between Jiangnan Mould and Hunan Investment
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By analyzing existing cross correlation between Jiangnan Mould Plastic and Hunan Investment Group, you can compare the effects of market volatilities on Jiangnan Mould and Hunan 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 Jiangnan Mould with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangnan Mould and Hunan Investment.
Diversification Opportunities for Jiangnan Mould and Hunan Investment
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangnan and Hunan is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jiangnan Mould Plastic and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Jiangnan Mould 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 Jiangnan Mould Plastic are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Jiangnan Mould i.e., Jiangnan Mould and Hunan Investment go up and down completely randomly.
Pair Corralation between Jiangnan Mould and Hunan Investment
Assuming the 90 days trading horizon Jiangnan Mould Plastic is expected to generate about the same return on investment as Hunan Investment Group. But, Jiangnan Mould Plastic is 1.05 times less risky than Hunan Investment. It trades about 0.08 of its potential returns per unit of risk. Hunan Investment Group is currently generating about 0.08 per unit of risk. If you would invest 513.00 in Hunan Investment Group on November 3, 2024 and sell it today you would earn a total of 12.00 from holding Hunan Investment Group or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangnan Mould Plastic vs. Hunan Investment Group
Performance |
| Timeline |
| Jiangnan Mould Plastic |
| Hunan Investment |
Jiangnan Mould and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangnan Mould and Hunan Investment
The main advantage of trading using opposite Jiangnan Mould and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangnan Mould position performs unexpectedly, Hunan 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Jiangnan Mould vs. Sinosteel Engineering and | Jiangnan Mould vs. Qiaoyin Environmental Tech | Jiangnan Mould vs. Fujian Nanwang Environment | Jiangnan Mould vs. Guangdong Ellington Electronics |
| Hunan Investment vs. Allmed Medical Products | Hunan Investment vs. Easyhome New Retail | Hunan Investment vs. AUPU Home Style | Hunan Investment vs. Ziel Home Furnishing |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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