Correlation Between Xiamen Jihong and Aofu Environmental
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiamen Jihong Package and Aofu Environmental Technology, you can compare the effects of market volatilities on Xiamen Jihong and Aofu Environmental 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 Xiamen Jihong with a short position of Aofu Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Aofu Environmental.
Diversification Opportunities for Xiamen Jihong and Aofu Environmental
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and Aofu is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Aofu Environmental Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aofu Environmental and Xiamen Jihong 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 Xiamen Jihong Package are associated (or correlated) with Aofu Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aofu Environmental has no effect on the direction of Xiamen Jihong i.e., Xiamen Jihong and Aofu Environmental go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Aofu Environmental
Assuming the 90 days trading horizon Xiamen Jihong is expected to generate 1.21 times less return on investment than Aofu Environmental. But when comparing it to its historical volatility, Xiamen Jihong Package is 1.06 times less risky than Aofu Environmental. It trades about 0.07 of its potential returns per unit of risk. Aofu Environmental Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 928.00 in Aofu Environmental Technology on September 5, 2024 and sell it today you would earn a total of 275.00 from holding Aofu Environmental Technology or generate 29.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Xiamen Jihong Package vs. Aofu Environmental Technology
Performance |
Timeline |
Xiamen Jihong Package |
Aofu Environmental |
Xiamen Jihong and Aofu Environmental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiamen Jihong and Aofu Environmental
The main advantage of trading using opposite Xiamen Jihong and Aofu Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong position performs unexpectedly, Aofu Environmental 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 Aofu Environmental will offset losses from the drop in Aofu Environmental's long position.Xiamen Jihong vs. Zijin Mining Group | Xiamen Jihong vs. Wanhua Chemical Group | Xiamen Jihong vs. Baoshan Iron Steel | Xiamen Jihong vs. Rongsheng Petrochemical Co |
Aofu Environmental vs. Zijin Mining Group | Aofu Environmental vs. Baoshan Iron Steel | Aofu Environmental vs. Rongsheng Petrochemical Co | Aofu Environmental vs. Shandong Gold Mining |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Transaction History View history of all your transactions and understand their impact on performance |