Correlation Between Jiangnan Mould and Dongxing Sec
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By analyzing existing cross correlation between Jiangnan Mould Plastic and Dongxing Sec Co, you can compare the effects of market volatilities on Jiangnan Mould and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangnan Mould and Dongxing Sec.
Diversification Opportunities for Jiangnan Mould and Dongxing Sec
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangnan and Dongxing is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jiangnan Mould Plastic and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Jiangnan Mould i.e., Jiangnan Mould and Dongxing Sec go up and down completely randomly.
Pair Corralation between Jiangnan Mould and Dongxing Sec
Assuming the 90 days trading horizon Jiangnan Mould is expected to generate 1.17 times less return on investment than Dongxing Sec. But when comparing it to its historical volatility, Jiangnan Mould Plastic is 1.33 times less risky than Dongxing Sec. It trades about 0.08 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,035 in Dongxing Sec Co on November 3, 2024 and sell it today you would earn a total of 27.00 from holding Dongxing Sec Co or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangnan Mould Plastic vs. Dongxing Sec Co
Performance |
| Timeline |
| Jiangnan Mould Plastic |
| Dongxing Sec |
Jiangnan Mould and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangnan Mould and Dongxing Sec
The main advantage of trading using opposite Jiangnan Mould and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangnan Mould position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec'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 |
| Dongxing Sec vs. Xiangyang Automobile Bearing | Dongxing Sec vs. Bank of Communications | Dongxing Sec vs. China Mobile Limited | Dongxing Sec vs. YiDong Electronics Technology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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