Correlation Between Xilong Chemical and Jiangxi Naipu
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By analyzing existing cross correlation between Xilong Chemical Co and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Xilong Chemical 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 Xilong Chemical with a short position of Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilong Chemical and Jiangxi Naipu.
Diversification Opportunities for Xilong Chemical and Jiangxi Naipu
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xilong and Jiangxi is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Xilong Chemical Co 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 Xilong Chemical 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 Xilong Chemical Co 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 Xilong Chemical i.e., Xilong Chemical and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Xilong Chemical and Jiangxi Naipu
Assuming the 90 days trading horizon Xilong Chemical Co is expected to generate 1.21 times more return on investment than Jiangxi Naipu. However, Xilong Chemical is 1.21 times more volatile than Jiangxi Naipu Mining. It trades about 0.09 of its potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about -0.16 per unit of risk. If you would invest 765.00 in Xilong Chemical Co on October 28, 2024 and sell it today you would earn a total of 28.00 from holding Xilong Chemical Co or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilong Chemical Co vs. Jiangxi Naipu Mining
Performance |
| Timeline |
| Xilong Chemical |
| Jiangxi Naipu Mining |
Xilong Chemical and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilong Chemical and Jiangxi Naipu
The main advantage of trading using opposite Xilong Chemical and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilong Chemical 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.| Xilong Chemical vs. Tongxing Environmental Protection | Xilong Chemical vs. Guangzhou Automobile Group | Xilong Chemical vs. CIMC Vehicles Co | Xilong Chemical vs. Haima Automobile Group |
| Jiangxi Naipu vs. Sichuan Yahua Industrial | Jiangxi Naipu vs. Soochow Suzhou Industrial | Jiangxi Naipu vs. Shanghai Yanpu Metal | Jiangxi Naipu vs. Zhejiang Yongjin 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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