Correlation Between Jiangnan Mould and Anhui Tongguan
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By analyzing existing cross correlation between Jiangnan Mould Plastic and Anhui Tongguan Copper, you can compare the effects of market volatilities on Jiangnan Mould and Anhui Tongguan 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 Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangnan Mould and Anhui Tongguan.
Diversification Opportunities for Jiangnan Mould and Anhui Tongguan
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangnan and Anhui is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jiangnan Mould Plastic and Anhui Tongguan Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Tongguan Copper 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 Anhui Tongguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Tongguan Copper has no effect on the direction of Jiangnan Mould i.e., Jiangnan Mould and Anhui Tongguan go up and down completely randomly.
Pair Corralation between Jiangnan Mould and Anhui Tongguan
Assuming the 90 days trading horizon Jiangnan Mould Plastic is expected to generate 0.54 times more return on investment than Anhui Tongguan. However, Jiangnan Mould Plastic is 1.86 times less risky than Anhui Tongguan. It trades about -0.06 of its potential returns per unit of risk. Anhui Tongguan Copper is currently generating about -0.04 per unit of risk. If you would invest 719.00 in Jiangnan Mould Plastic on October 28, 2024 and sell it today you would lose (19.00) from holding Jiangnan Mould Plastic or give up 2.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangnan Mould Plastic vs. Anhui Tongguan Copper
Performance |
| Timeline |
| Jiangnan Mould Plastic |
| Anhui Tongguan Copper |
Jiangnan Mould and Anhui Tongguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangnan Mould and Anhui Tongguan
The main advantage of trading using opposite Jiangnan Mould and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangnan Mould position performs unexpectedly, Anhui Tongguan 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 Anhui Tongguan will offset losses from the drop in Anhui Tongguan's long position.| Jiangnan Mould vs. Kailong High Technology | Jiangnan Mould vs. Nanxing Furniture Machinery | Jiangnan Mould vs. Senci Electric Machinery | Jiangnan Mould vs. Shanghai Construction Group |
| Anhui Tongguan vs. Dhc Software Co | Anhui Tongguan vs. Financial Street Holdings | Anhui Tongguan vs. GRG Banking Equipment | Anhui Tongguan vs. Linewell Software Co |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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