Correlation Between Zoje Resources and Jiangsu Xinning
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By analyzing existing cross correlation between Zoje Resources Investment and Jiangsu Xinning Modern, you can compare the effects of market volatilities on Zoje Resources and Jiangsu Xinning 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 Zoje Resources with a short position of Jiangsu Xinning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Jiangsu Xinning.
Diversification Opportunities for Zoje Resources and Jiangsu Xinning
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zoje and Jiangsu is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and Jiangsu Xinning Modern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinning Modern and Zoje Resources 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 Zoje Resources Investment are associated (or correlated) with Jiangsu Xinning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinning Modern has no effect on the direction of Zoje Resources i.e., Zoje Resources and Jiangsu Xinning go up and down completely randomly.
Pair Corralation between Zoje Resources and Jiangsu Xinning
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 1.06 times more return on investment than Jiangsu Xinning. However, Zoje Resources is 1.06 times more volatile than Jiangsu Xinning Modern. It trades about 0.3 of its potential returns per unit of risk. Jiangsu Xinning Modern is currently generating about 0.09 per unit of risk. If you would invest 254.00 in Zoje Resources Investment on September 15, 2024 and sell it today you would earn a total of 74.00 from holding Zoje Resources Investment or generate 29.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. Jiangsu Xinning Modern
Performance |
| Timeline |
| Zoje Resources Investment |
| Jiangsu Xinning Modern |
Zoje Resources and Jiangsu Xinning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Jiangsu Xinning
The main advantage of trading using opposite Zoje Resources and Jiangsu Xinning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, Jiangsu Xinning 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 Jiangsu Xinning will offset losses from the drop in Jiangsu Xinning's long position.| Zoje Resources vs. Chongqing Changan Automobile | Zoje Resources vs. Lotus Health Group | Zoje Resources vs. Ningbo Fangzheng Automobile | Zoje Resources vs. Healthcare Co |
| Jiangsu Xinning vs. Cultural Investment Holdings | Jiangsu Xinning vs. Gome Telecom Equipment | Jiangsu Xinning vs. Holitech Technology Co | Jiangsu Xinning vs. Zotye Automobile Co |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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