Correlation Between Western Metal and Jiangxi JDL
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By analyzing existing cross correlation between Western Metal Materials and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Western Metal and Jiangxi JDL 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 JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Jiangxi JDL.
Diversification Opportunities for Western Metal and Jiangxi JDL
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Western and Jiangxi is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental 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 JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of Western Metal i.e., Western Metal and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Western Metal and Jiangxi JDL
Assuming the 90 days trading horizon Western Metal Materials is expected to generate 1.22 times more return on investment than Jiangxi JDL. However, Western Metal is 1.22 times more volatile than Jiangxi JDL Environmental. It trades about 0.02 of its potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about -0.02 per unit of risk. If you would invest 1,599 in Western Metal Materials on October 30, 2024 and sell it today you would earn a total of 101.00 from holding Western Metal Materials or generate 6.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Jiangxi JDL Environmental
Performance |
| Timeline |
| Western Metal Materials |
| Jiangxi JDL Environmental |
Western Metal and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Jiangxi JDL
The main advantage of trading using opposite Western Metal and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal position performs unexpectedly, Jiangxi JDL 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 JDL will offset losses from the drop in Jiangxi JDL's long position.| Western Metal vs. Industrial Bank Co | Western Metal vs. Hangzhou Arcvideo Technology | Western Metal vs. Ningbo Tech Bank Co | Western Metal vs. Citic Guoan Wine |
| Jiangxi JDL vs. Industrial and Commercial | Jiangxi JDL vs. Agricultural Bank of | Jiangxi JDL vs. China Construction Bank | Jiangxi JDL vs. Bank of China |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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