Correlation Between Hunan Mendale and Jiangnan Mould
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By analyzing existing cross correlation between Hunan Mendale Hometextile and Jiangnan Mould Plastic, you can compare the effects of market volatilities on Hunan Mendale 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 Hunan Mendale with a short position of Jiangnan Mould. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Jiangnan Mould.
Diversification Opportunities for Hunan Mendale and Jiangnan Mould
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hunan and Jiangnan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile 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 Hunan Mendale 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 Hunan Mendale Hometextile 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 Hunan Mendale i.e., Hunan Mendale and Jiangnan Mould go up and down completely randomly.
Pair Corralation between Hunan Mendale and Jiangnan Mould
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to generate 1.07 times more return on investment than Jiangnan Mould. However, Hunan Mendale is 1.07 times more volatile than Jiangnan Mould Plastic. It trades about 0.29 of its potential returns per unit of risk. Jiangnan Mould Plastic is currently generating about 0.2 per unit of risk. If you would invest 194.00 in Hunan Mendale Hometextile on September 12, 2024 and sell it today you would earn a total of 141.00 from holding Hunan Mendale Hometextile or generate 72.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Jiangnan Mould Plastic
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Jiangnan Mould Plastic |
Hunan Mendale and Jiangnan Mould Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Jiangnan Mould
The main advantage of trading using opposite Hunan Mendale and Jiangnan Mould positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale 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.| Hunan Mendale vs. Lutian Machinery Co | Hunan Mendale vs. PetroChina Co Ltd | Hunan Mendale vs. Bank of China | Hunan Mendale vs. Gansu Jiu Steel |
| Jiangnan Mould vs. Suzhou Douson Drilling | Jiangnan Mould vs. Zhejiang Construction Investment | Jiangnan Mould vs. Xiandai Investment Co | Jiangnan Mould vs. Lander Sports Development |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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