Correlation Between Jiangxi Selon and Jiangsu Leadmicro
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By analyzing existing cross correlation between Jiangxi Selon Industrial and Jiangsu Leadmicro Nano, you can compare the effects of market volatilities on Jiangxi Selon and Jiangsu Leadmicro 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 Jiangsu Leadmicro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Selon and Jiangsu Leadmicro.
Diversification Opportunities for Jiangxi Selon and Jiangsu Leadmicro
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Jiangsu is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Selon Industrial and Jiangsu Leadmicro Nano in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Leadmicro Nano 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 Jiangsu Leadmicro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Leadmicro Nano has no effect on the direction of Jiangxi Selon i.e., Jiangxi Selon and Jiangsu Leadmicro go up and down completely randomly.
Pair Corralation between Jiangxi Selon and Jiangsu Leadmicro
Assuming the 90 days trading horizon Jiangxi Selon Industrial is expected to generate 0.95 times more return on investment than Jiangsu Leadmicro. However, Jiangxi Selon Industrial is 1.06 times less risky than Jiangsu Leadmicro. It trades about 0.0 of its potential returns per unit of risk. Jiangsu Leadmicro Nano is currently generating about -0.02 per unit of risk. If you would invest 999.00 in Jiangxi Selon Industrial on September 14, 2024 and sell it today you would lose (201.00) from holding Jiangxi Selon Industrial or give up 20.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Selon Industrial vs. Jiangsu Leadmicro Nano
Performance |
| Timeline |
| Jiangxi Selon Industrial |
| Jiangsu Leadmicro Nano |
Jiangxi Selon and Jiangsu Leadmicro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Selon and Jiangsu Leadmicro
The main advantage of trading using opposite Jiangxi Selon and Jiangsu Leadmicro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Selon position performs unexpectedly, Jiangsu Leadmicro 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 Jiangsu Leadmicro will offset losses from the drop in Jiangsu Leadmicro's long position.| Jiangxi Selon vs. Xinjiang Tianrun Dairy | Jiangxi Selon vs. Eastroc Beverage Group | Jiangxi Selon vs. Qtone Education Group | Jiangxi Selon vs. Northern United Publishing |
| Jiangsu Leadmicro vs. Dook Media Group | Jiangsu Leadmicro vs. Jiangxi Selon Industrial | Jiangsu Leadmicro vs. Mango Excellent Media | Jiangsu Leadmicro vs. Wasu Media Holding |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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