Correlation Between Jiangxi Selon and Beijing Mainstreets
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By analyzing existing cross correlation between Jiangxi Selon Industrial and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Jiangxi Selon and Beijing Mainstreets 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 Jiangxi Selon with a short position of Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Selon and Beijing Mainstreets.
Diversification Opportunities for Jiangxi Selon and Beijing Mainstreets
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Beijing is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Selon Industrial and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets and Jiangxi Selon 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 Jiangxi Selon Industrial are associated (or correlated) with Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of Jiangxi Selon i.e., Jiangxi Selon and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Jiangxi Selon and Beijing Mainstreets
Assuming the 90 days trading horizon Jiangxi Selon Industrial is expected to generate 0.7 times more return on investment than Beijing Mainstreets. However, Jiangxi Selon Industrial is 1.42 times less risky than Beijing Mainstreets. It trades about 0.2 of its potential returns per unit of risk. Beijing Mainstreets Investment is currently generating about 0.12 per unit of risk. If you would invest 626.00 in Jiangxi Selon Industrial on September 3, 2024 and sell it today you would earn a total of 65.00 from holding Jiangxi Selon Industrial or generate 10.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Selon Industrial vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| Jiangxi Selon Industrial |
| Beijing Mainstreets |
Jiangxi Selon and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Selon and Beijing Mainstreets
The main advantage of trading using opposite Jiangxi Selon and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Selon position performs unexpectedly, Beijing Mainstreets 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 Beijing Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.| Jiangxi Selon vs. Aofu Environmental Technology | Jiangxi Selon vs. Zijin Mining Group | Jiangxi Selon vs. Changjiang Jinggong Steel | Jiangxi Selon vs. Fujian Nanwang Environment |
| Beijing Mainstreets vs. Jiangxi Selon Industrial | Beijing Mainstreets vs. Shandong Mining Machinery | Beijing Mainstreets vs. XinJiang GuoTong Pipeline | Beijing Mainstreets vs. Yoantion Industrial IncLtd |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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