Correlation Between Nanjing Yunhai and Jiangxi Selon
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By analyzing existing cross correlation between Nanjing Yunhai Special and Jiangxi Selon Industrial, you can compare the effects of market volatilities on Nanjing Yunhai and Jiangxi Selon 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 Nanjing Yunhai with a short position of Jiangxi Selon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Yunhai and Jiangxi Selon.
Diversification Opportunities for Nanjing Yunhai and Jiangxi Selon
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Jiangxi is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Yunhai Special and Jiangxi Selon Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Selon Industrial and Nanjing Yunhai 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 Nanjing Yunhai Special are associated (or correlated) with Jiangxi Selon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Selon Industrial has no effect on the direction of Nanjing Yunhai i.e., Nanjing Yunhai and Jiangxi Selon go up and down completely randomly.
Pair Corralation between Nanjing Yunhai and Jiangxi Selon
Assuming the 90 days trading horizon Nanjing Yunhai Special is expected to generate 0.81 times more return on investment than Jiangxi Selon. However, Nanjing Yunhai Special is 1.23 times less risky than Jiangxi Selon. It trades about 0.0 of its potential returns per unit of risk. Jiangxi Selon Industrial is currently generating about 0.0 per unit of risk. If you would invest 1,468 in Nanjing Yunhai Special on September 13, 2024 and sell it today you would lose (137.00) from holding Nanjing Yunhai Special or give up 9.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Yunhai Special vs. Jiangxi Selon Industrial
Performance |
| Timeline |
| Nanjing Yunhai Special |
| Jiangxi Selon Industrial |
Nanjing Yunhai and Jiangxi Selon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Yunhai and Jiangxi Selon
The main advantage of trading using opposite Nanjing Yunhai and Jiangxi Selon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Yunhai position performs unexpectedly, Jiangxi Selon 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 Selon will offset losses from the drop in Jiangxi Selon's long position.| Nanjing Yunhai vs. Ye Chiu Metal | Nanjing Yunhai vs. Qingdao Choho Industrial | Nanjing Yunhai vs. Hainan Mining Co | Nanjing Yunhai vs. Chengtun Mining Group |
| Jiangxi Selon vs. Zijin Mining Group | Jiangxi Selon vs. Wanhua Chemical Group | Jiangxi Selon vs. Baoshan Iron Steel | Jiangxi Selon vs. Shandong Gold Mining |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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