Correlation Between Xiandai Investment and Jiangnan Mould
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By analyzing existing cross correlation between Xiandai Investment Co and Jiangnan Mould Plastic, you can compare the effects of market volatilities on Xiandai Investment and Jiangnan Mould 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 Xiandai Investment with a short position of Jiangnan Mould. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Jiangnan Mould.
Diversification Opportunities for Xiandai Investment and Jiangnan Mould
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiandai and Jiangnan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Jiangnan Mould Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangnan Mould Plastic and Xiandai Investment 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 Xiandai Investment Co are associated (or correlated) with Jiangnan Mould. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangnan Mould Plastic has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Jiangnan Mould go up and down completely randomly.
Pair Corralation between Xiandai Investment and Jiangnan Mould
Assuming the 90 days trading horizon Xiandai Investment Co is expected to generate 1.14 times more return on investment than Jiangnan Mould. However, Xiandai Investment is 1.14 times more volatile than Jiangnan Mould Plastic. It trades about 0.19 of its potential returns per unit of risk. Jiangnan Mould Plastic is currently generating about -0.01 per unit of risk. If you would invest 423.00 in Xiandai Investment Co on September 13, 2024 and sell it today you would earn a total of 48.00 from holding Xiandai Investment Co or generate 11.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Xiandai Investment Co vs. Jiangnan Mould Plastic
Performance |
| Timeline |
| Xiandai Investment |
| Jiangnan Mould Plastic |
Xiandai Investment and Jiangnan Mould Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Jiangnan Mould
The main advantage of trading using opposite Xiandai Investment and Jiangnan Mould positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Jiangnan Mould 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 Jiangnan Mould will offset losses from the drop in Jiangnan Mould's long position.| Xiandai Investment vs. Industrial and Commercial | Xiandai Investment vs. Kweichow Moutai Co | Xiandai Investment vs. Agricultural Bank of | Xiandai Investment vs. China Mobile Limited |
| Jiangnan Mould vs. Zoje Resources Investment | Jiangnan Mould vs. Shanghai Yaoji Playing | Jiangnan Mould vs. Harbin Hatou Investment | Jiangnan Mould vs. Shanghai Metersbonwe FashionAccessories |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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