Correlation Between Guangzhou Ruoyuchen and Jiangxi Copper
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By analyzing existing cross correlation between Guangzhou Ruoyuchen Information and Jiangxi Copper Co, you can compare the effects of market volatilities on Guangzhou Ruoyuchen and Jiangxi Copper 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 Guangzhou Ruoyuchen with a short position of Jiangxi Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Ruoyuchen and Jiangxi Copper.
Diversification Opportunities for Guangzhou Ruoyuchen and Jiangxi Copper
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangzhou and Jiangxi is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Ruoyuchen Informatio and Jiangxi Copper Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Copper and Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen Information are associated (or correlated) with Jiangxi Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Copper has no effect on the direction of Guangzhou Ruoyuchen i.e., Guangzhou Ruoyuchen and Jiangxi Copper go up and down completely randomly.
Pair Corralation between Guangzhou Ruoyuchen and Jiangxi Copper
Assuming the 90 days trading horizon Guangzhou Ruoyuchen Information is expected to generate 3.38 times more return on investment than Jiangxi Copper. However, Guangzhou Ruoyuchen is 3.38 times more volatile than Jiangxi Copper Co. It trades about 0.37 of its potential returns per unit of risk. Jiangxi Copper Co is currently generating about -0.21 per unit of risk. If you would invest 1,590 in Guangzhou Ruoyuchen Information on September 5, 2024 and sell it today you would earn a total of 687.00 from holding Guangzhou Ruoyuchen Information or generate 43.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Ruoyuchen Informatio vs. Jiangxi Copper Co
Performance |
| Timeline |
| Guangzhou Ruoyuchen |
| Jiangxi Copper |
Guangzhou Ruoyuchen and Jiangxi Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Ruoyuchen and Jiangxi Copper
The main advantage of trading using opposite Guangzhou Ruoyuchen and Jiangxi Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Ruoyuchen position performs unexpectedly, Jiangxi Copper 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 Copper will offset losses from the drop in Jiangxi Copper's long position.| Guangzhou Ruoyuchen vs. Jiugui Liquor Co | Guangzhou Ruoyuchen vs. Guangzhou Restaurants Group | Guangzhou Ruoyuchen vs. Fujian Newland Computer | Guangzhou Ruoyuchen vs. Jilin Chemical Fibre |
| Jiangxi Copper vs. Suzhou Mingzhi Technology | Jiangxi Copper vs. Guangzhou Ruoyuchen Information | Jiangxi Copper vs. Nanjing Putian Telecommunications | Jiangxi Copper vs. YLZ Information Tech |
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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