Correlation Between Western Metal and Jiangxi Naipu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Western Metal Materials and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Western Metal and Jiangxi Naipu 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 Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Jiangxi Naipu.
Diversification Opportunities for Western Metal and Jiangxi Naipu
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Western and Jiangxi is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials and Jiangxi Naipu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Naipu Mining 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 Jiangxi Naipu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Naipu Mining has no effect on the direction of Western Metal i.e., Western Metal and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Western Metal and Jiangxi Naipu
Assuming the 90 days trading horizon Western Metal is expected to generate 1.73 times less return on investment than Jiangxi Naipu. But when comparing it to its historical volatility, Western Metal Materials is 1.11 times less risky than Jiangxi Naipu. It trades about 0.03 of its potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,337 in Jiangxi Naipu Mining on September 4, 2024 and sell it today you would earn a total of 611.00 from holding Jiangxi Naipu Mining or generate 26.14% 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. Jiangxi Naipu Mining
Performance |
| Timeline |
| Western Metal Materials |
| Jiangxi Naipu Mining |
Western Metal and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Jiangxi Naipu
The main advantage of trading using opposite Western Metal and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal position performs unexpectedly, Jiangxi Naipu 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 Jiangxi Naipu will offset losses from the drop in Jiangxi Naipu's long position.| Western Metal vs. Techshine Electronics Co | Western Metal vs. Leaguer Shenzhen MicroElectronics | Western Metal vs. Suzhou Weizhixiang Food | Western Metal vs. Guilin Seamild Foods |
| Jiangxi Naipu vs. Pengxin International Mining | Jiangxi Naipu vs. Western Metal Materials | Jiangxi Naipu vs. Heilongjiang Transport Development | Jiangxi Naipu vs. Ye Chiu Metal |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |