Correlation Between Jiangnan Mould and Huafa Industrial
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By analyzing existing cross correlation between Jiangnan Mould Plastic and Huafa Industrial Co, you can compare the effects of market volatilities on Jiangnan Mould and Huafa Industrial 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 Huafa Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangnan Mould and Huafa Industrial.
Diversification Opportunities for Jiangnan Mould and Huafa Industrial
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jiangnan and Huafa is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Jiangnan Mould Plastic and Huafa Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huafa Industrial 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 Huafa Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huafa Industrial has no effect on the direction of Jiangnan Mould i.e., Jiangnan Mould and Huafa Industrial go up and down completely randomly.
Pair Corralation between Jiangnan Mould and Huafa Industrial
Assuming the 90 days trading horizon Jiangnan Mould Plastic is expected to generate 1.12 times more return on investment than Huafa Industrial. However, Jiangnan Mould is 1.12 times more volatile than Huafa Industrial Co. It trades about 0.03 of its potential returns per unit of risk. Huafa Industrial Co is currently generating about -0.03 per unit of risk. If you would invest 511.00 in Jiangnan Mould Plastic on October 16, 2024 and sell it today you would earn a total of 152.00 from holding Jiangnan Mould Plastic or generate 29.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangnan Mould Plastic vs. Huafa Industrial Co
Performance |
| Timeline |
| Jiangnan Mould Plastic |
| Huafa Industrial |
Jiangnan Mould and Huafa Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangnan Mould and Huafa Industrial
The main advantage of trading using opposite Jiangnan Mould and Huafa Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangnan Mould position performs unexpectedly, Huafa Industrial 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 Huafa Industrial will offset losses from the drop in Huafa Industrial's long position.| Jiangnan Mould vs. Heilongjiang Transport Development | Jiangnan Mould vs. Shanghai Broadband Technology | Jiangnan Mould vs. Jiangsu Broadcasting Cable | Jiangnan Mould vs. Zhongrun Resources Investment |
| Huafa Industrial vs. Ningbo Fujia Industrial | Huafa Industrial vs. Universal Scientific Industrial | Huafa Industrial vs. Dezhan HealthCare Co | Huafa Industrial vs. Healthcare 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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