Correlation Between Jiangnan Mould and Suzhou Xingye
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By analyzing existing cross correlation between Jiangnan Mould Plastic and Suzhou Xingye Material, you can compare the effects of market volatilities on Jiangnan Mould and Suzhou Xingye 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 Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangnan Mould and Suzhou Xingye.
Diversification Opportunities for Jiangnan Mould and Suzhou Xingye
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangnan and Suzhou is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jiangnan Mould Plastic and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material 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 Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Jiangnan Mould i.e., Jiangnan Mould and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Jiangnan Mould and Suzhou Xingye
Assuming the 90 days trading horizon Jiangnan Mould Plastic is expected to generate 1.0 times more return on investment than Suzhou Xingye. However, Jiangnan Mould Plastic is 1.0 times less risky than Suzhou Xingye. It trades about 0.03 of its potential returns per unit of risk. Suzhou Xingye Material is currently generating about -0.01 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. Suzhou Xingye Material
Performance |
| Timeline |
| Jiangnan Mould Plastic |
| Suzhou Xingye Material |
Jiangnan Mould and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangnan Mould and Suzhou Xingye
The main advantage of trading using opposite Jiangnan Mould and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangnan Mould position performs unexpectedly, Suzhou Xingye 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 Suzhou Xingye will offset losses from the drop in Suzhou Xingye'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 |
| Suzhou Xingye vs. Inspur Software Co | Suzhou Xingye vs. Shandong Hi Speed RoadBridge | Suzhou Xingye vs. Shaanxi Broadcast TV | Suzhou Xingye vs. Hangzhou Pinming Software |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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