Correlation Between Jiangnan Mould and Hefei Metalforming
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By analyzing existing cross correlation between Jiangnan Mould Plastic and Hefei Metalforming Mach, you can compare the effects of market volatilities on Jiangnan Mould and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangnan Mould and Hefei Metalforming.
Diversification Opportunities for Jiangnan Mould and Hefei Metalforming
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangnan and Hefei is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiangnan Mould Plastic and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Jiangnan Mould i.e., Jiangnan Mould and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Jiangnan Mould and Hefei Metalforming
Assuming the 90 days trading horizon Jiangnan Mould Plastic is expected to generate 0.85 times more return on investment than Hefei Metalforming. However, Jiangnan Mould Plastic is 1.18 times less risky than Hefei Metalforming. It trades about 0.16 of its potential returns per unit of risk. Hefei Metalforming Mach is currently generating about 0.13 per unit of risk. If you would invest 672.00 in Jiangnan Mould Plastic on September 2, 2024 and sell it today you would earn a total of 73.00 from holding Jiangnan Mould Plastic or generate 10.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangnan Mould Plastic vs. Hefei Metalforming Mach
Performance |
| Timeline |
| Jiangnan Mould Plastic |
| Hefei Metalforming Mach |
Jiangnan Mould and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangnan Mould and Hefei Metalforming
The main advantage of trading using opposite Jiangnan Mould and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangnan Mould position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming's long position.| Jiangnan Mould vs. BYD Co Ltd | Jiangnan Mould vs. China Mobile Limited | Jiangnan Mould vs. Agricultural Bank of | Jiangnan Mould vs. Industrial and Commercial |
| Hefei Metalforming vs. Anhui Transport Consulting | Hefei Metalforming vs. Western Metal Materials | Hefei Metalforming vs. Yunnan Xiyi Industrial | Hefei Metalforming vs. China Minmetals Rare |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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