Correlation Between Jiangnan Mould and Xinjiang Tianrun
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By analyzing existing cross correlation between Jiangnan Mould Plastic and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Jiangnan Mould and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangnan Mould and Xinjiang Tianrun.
Diversification Opportunities for Jiangnan Mould and Xinjiang Tianrun
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangnan and Xinjiang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jiangnan Mould Plastic and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Jiangnan Mould i.e., Jiangnan Mould and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Jiangnan Mould and Xinjiang Tianrun
Assuming the 90 days trading horizon Jiangnan Mould Plastic is expected to generate 1.32 times more return on investment than Xinjiang Tianrun. However, Jiangnan Mould is 1.32 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.03 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.05 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangnan Mould Plastic vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Jiangnan Mould Plastic |
| Xinjiang Tianrun Dairy |
Jiangnan Mould and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangnan Mould and Xinjiang Tianrun
The main advantage of trading using opposite Jiangnan Mould and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangnan Mould position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| Jiangnan Mould vs. Tianjin Ruixin Technology | Jiangnan Mould vs. 360 Security Technology | Jiangnan Mould vs. Eyebright Medical Technology | Jiangnan Mould vs. China Eastern Airlines |
| Xinjiang Tianrun vs. Henan Shuanghui Investment | Xinjiang Tianrun vs. Hunan Investment Group | Xinjiang Tianrun vs. Harbin Hatou Investment | Xinjiang Tianrun vs. Shandong Polymer Biochemicals |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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