Correlation Between Sichuan Yahua and Jiangxi Naipu
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By analyzing existing cross correlation between Sichuan Yahua Industrial and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Sichuan Yahua 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 Sichuan Yahua with a short position of Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Jiangxi Naipu.
Diversification Opportunities for Sichuan Yahua and Jiangxi Naipu
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sichuan and Jiangxi is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial 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 Sichuan Yahua 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 Sichuan Yahua Industrial 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 Sichuan Yahua i.e., Sichuan Yahua and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Jiangxi Naipu
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to generate 1.68 times more return on investment than Jiangxi Naipu. However, Sichuan Yahua is 1.68 times more volatile than Jiangxi Naipu Mining. It trades about 0.18 of its potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about -0.15 per unit of risk. If you would invest 1,197 in Sichuan Yahua Industrial on October 29, 2024 and sell it today you would earn a total of 123.00 from holding Sichuan Yahua Industrial or generate 10.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. Jiangxi Naipu Mining
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| Jiangxi Naipu Mining |
Sichuan Yahua and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and Jiangxi Naipu
The main advantage of trading using opposite Sichuan Yahua and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua 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.| Sichuan Yahua vs. Gan Yuan Foods | Sichuan Yahua vs. Sinomach Automobile Co | Sichuan Yahua vs. Suzhou Weizhixiang Food | Sichuan Yahua vs. Anji Foodstuff Co |
| Jiangxi Naipu vs. Chinese Universe Publishing | Jiangxi Naipu vs. Offcn Education Technology | Jiangxi Naipu vs. Zhejiang Publishing Media | Jiangxi Naipu vs. Silkroad Visual Technology |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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