Correlation Between Jiangnan Mould and Liaoning Chengda
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By analyzing existing cross correlation between Jiangnan Mould Plastic and Liaoning Chengda Biotechnology, you can compare the effects of market volatilities on Jiangnan Mould and Liaoning Chengda 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 Liaoning Chengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangnan Mould and Liaoning Chengda.
Diversification Opportunities for Jiangnan Mould and Liaoning Chengda
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangnan and Liaoning is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jiangnan Mould Plastic and Liaoning Chengda Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Chengda Bio 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 Liaoning Chengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Chengda Bio has no effect on the direction of Jiangnan Mould i.e., Jiangnan Mould and Liaoning Chengda go up and down completely randomly.
Pair Corralation between Jiangnan Mould and Liaoning Chengda
Assuming the 90 days trading horizon Jiangnan Mould Plastic is expected to generate 1.64 times more return on investment than Liaoning Chengda. However, Jiangnan Mould is 1.64 times more volatile than Liaoning Chengda Biotechnology. It trades about -0.05 of its potential returns per unit of risk. Liaoning Chengda Biotechnology is currently generating about -0.1 per unit of risk. If you would invest 723.00 in Jiangnan Mould Plastic on October 30, 2024 and sell it today you would lose (32.00) from holding Jiangnan Mould Plastic or give up 4.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangnan Mould Plastic vs. Liaoning Chengda Biotechnology
Performance |
| Timeline |
| Jiangnan Mould Plastic |
| Liaoning Chengda Bio |
Jiangnan Mould and Liaoning Chengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangnan Mould and Liaoning Chengda
The main advantage of trading using opposite Jiangnan Mould and Liaoning Chengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangnan Mould position performs unexpectedly, Liaoning Chengda 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 Liaoning Chengda will offset losses from the drop in Liaoning Chengda's long position.| Jiangnan Mould vs. BrightGene Bio Medical | Jiangnan Mould vs. Kontour Medical Technology | Jiangnan Mould vs. Threes Company Media | Jiangnan Mould vs. Hengdian Entertainment Co |
| Liaoning Chengda vs. China Petroleum Chemical | Liaoning Chengda vs. PetroChina Co Ltd | Liaoning Chengda vs. China State Construction | Liaoning Chengda vs. China Railway Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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