Correlation Between Strait Innovation and Jiangxi Naipu
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By analyzing existing cross correlation between Strait Innovation Internet and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Strait Innovation 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 Strait Innovation with a short position of Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strait Innovation and Jiangxi Naipu.
Diversification Opportunities for Strait Innovation and Jiangxi Naipu
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Strait and Jiangxi is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Strait Innovation Internet 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 Strait Innovation 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 Strait Innovation Internet 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 Strait Innovation i.e., Strait Innovation and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Strait Innovation and Jiangxi Naipu
Assuming the 90 days trading horizon Strait Innovation Internet is expected to generate 2.04 times more return on investment than Jiangxi Naipu. However, Strait Innovation is 2.04 times more volatile than Jiangxi Naipu Mining. It trades about -0.01 of its potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about -0.2 per unit of risk. If you would invest 288.00 in Strait Innovation Internet on October 30, 2024 and sell it today you would lose (5.00) from holding Strait Innovation Internet or give up 1.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strait Innovation Internet vs. Jiangxi Naipu Mining
Performance |
| Timeline |
| Strait Innovation |
| Jiangxi Naipu Mining |
Strait Innovation and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strait Innovation and Jiangxi Naipu
The main advantage of trading using opposite Strait Innovation and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strait Innovation 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.| Strait Innovation vs. Hubei Geoway Investment | Strait Innovation vs. Harbin Hatou Investment | Strait Innovation vs. Hefei Metalforming Mach | Strait Innovation vs. Anhui Tongguan Copper |
| Jiangxi Naipu vs. Advanced Technology Materials | Jiangxi Naipu vs. Shanghai Rightongene Biotechnology | Jiangxi Naipu vs. Jiangnan Mould Plastic | Jiangxi Naipu vs. Jiangsu GDK Biotechnology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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