Correlation Between Western Metal and Jiangnan Mould
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By analyzing existing cross correlation between Western Metal Materials and Jiangnan Mould Plastic, you can compare the effects of market volatilities on Western Metal 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 Western Metal with a short position of Jiangnan Mould. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Jiangnan Mould.
Diversification Opportunities for Western Metal and Jiangnan Mould
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Western and Jiangnan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials 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 Western Metal 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 Western Metal Materials 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 Western Metal i.e., Western Metal and Jiangnan Mould go up and down completely randomly.
Pair Corralation between Western Metal and Jiangnan Mould
Assuming the 90 days trading horizon Western Metal is expected to generate 2.07 times less return on investment than Jiangnan Mould. But when comparing it to its historical volatility, Western Metal Materials is 1.0 times less risky than Jiangnan Mould. It trades about 0.05 of its potential returns per unit of risk. Jiangnan Mould Plastic is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 560.00 in Jiangnan Mould Plastic on August 30, 2024 and sell it today you would earn a total of 186.00 from holding Jiangnan Mould Plastic or generate 33.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Jiangnan Mould Plastic
Performance |
| Timeline |
| Western Metal Materials |
| Jiangnan Mould Plastic |
Western Metal and Jiangnan Mould Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Jiangnan Mould
The main advantage of trading using opposite Western Metal and Jiangnan Mould positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal 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.| Western Metal vs. Zijin Mining Group | Western Metal vs. Wanhua Chemical Group | Western Metal vs. Baoshan Iron Steel | Western Metal vs. Shandong Gold Mining |
| Jiangnan Mould vs. Sichuan Teway Food | Jiangnan Mould vs. Western Metal Materials | Jiangnan Mould vs. Jiahe Foods Industry | Jiangnan Mould vs. Sinosteel Luonai Materials |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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