Correlation Between Jiangnan Mould and Road Environment
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By analyzing existing cross correlation between Jiangnan Mould Plastic and Road Environment Technology, you can compare the effects of market volatilities on Jiangnan Mould and Road Environment 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 Road Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangnan Mould and Road Environment.
Diversification Opportunities for Jiangnan Mould and Road Environment
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangnan and Road is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jiangnan Mould Plastic and Road Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Road Environment Tec 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 Road Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Road Environment Tec has no effect on the direction of Jiangnan Mould i.e., Jiangnan Mould and Road Environment go up and down completely randomly.
Pair Corralation between Jiangnan Mould and Road Environment
Assuming the 90 days trading horizon Jiangnan Mould Plastic is expected to generate 1.18 times more return on investment than Road Environment. However, Jiangnan Mould is 1.18 times more volatile than Road Environment Technology. It trades about 0.2 of its potential returns per unit of risk. Road Environment Technology is currently generating about 0.01 per unit of risk. If you would invest 668.00 in Jiangnan Mould Plastic on August 30, 2024 and sell it today you would earn a total of 101.00 from holding Jiangnan Mould Plastic or generate 15.12% 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. Road Environment Technology
Performance |
| Timeline |
| Jiangnan Mould Plastic |
| Road Environment Tec |
Jiangnan Mould and Road Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangnan Mould and Road Environment
The main advantage of trading using opposite Jiangnan Mould and Road Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangnan Mould position performs unexpectedly, Road Environment 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 Road Environment will offset losses from the drop in Road Environment's long position.| Jiangnan Mould vs. Sichuan Teway Food | Jiangnan Mould vs. Western Metal Materials | Jiangnan Mould vs. Jiahe Foods Industry | Jiangnan Mould vs. Sinosteel Luonai Materials |
| Road Environment vs. Shenzhen MYS Environmental | Road Environment vs. AVIC Fund Management | Road Environment vs. Shenzhen Bingchuan Network | Road Environment vs. Penghua Shenzhen Energy |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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