Correlation Between Jiangxi Naipu and City Development
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By analyzing existing cross correlation between Jiangxi Naipu Mining and City Development Environment, you can compare the effects of market volatilities on Jiangxi Naipu and City Development 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 Naipu with a short position of City Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and City Development.
Diversification Opportunities for Jiangxi Naipu and City Development
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and City is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and City Development Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Development Env and Jiangxi Naipu 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 Naipu Mining are associated (or correlated) with City Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Development Env has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and City Development go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and City Development
Assuming the 90 days trading horizon Jiangxi Naipu is expected to generate 1.02 times less return on investment than City Development. In addition to that, Jiangxi Naipu is 1.37 times more volatile than City Development Environment. It trades about 0.02 of its total potential returns per unit of risk. City Development Environment is currently generating about 0.03 per unit of volatility. If you would invest 1,247 in City Development Environment on September 3, 2024 and sell it today you would earn a total of 106.00 from holding City Development Environment or generate 8.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. City Development Environment
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| City Development Env |
Jiangxi Naipu and City Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and City Development
The main advantage of trading using opposite Jiangxi Naipu and City Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, City Development 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 City Development will offset losses from the drop in City Development's long position.| Jiangxi Naipu vs. Cultural Investment Holdings | Jiangxi Naipu vs. Gome Telecom Equipment | Jiangxi Naipu vs. Bus Online Co | Jiangxi Naipu vs. Holitech Technology Co |
| City Development vs. Beijing Yanjing Brewery | City Development vs. Oriental Times Media | City Development vs. Ligao Foods CoLtd | City Development vs. Beijing Sanyuan Foods |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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