Correlation Between Jiangxi Naipu and Chenzhou Jingui
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Chenzhou Jingui Silver, you can compare the effects of market volatilities on Jiangxi Naipu and Chenzhou Jingui 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 Chenzhou Jingui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Chenzhou Jingui.
Diversification Opportunities for Jiangxi Naipu and Chenzhou Jingui
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Chenzhou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and Chenzhou Jingui Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chenzhou Jingui Silver 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 Chenzhou Jingui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chenzhou Jingui Silver has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and Chenzhou Jingui go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Chenzhou Jingui
Assuming the 90 days trading horizon Jiangxi Naipu is expected to generate 1.33 times less return on investment than Chenzhou Jingui. In addition to that, Jiangxi Naipu is 1.07 times more volatile than Chenzhou Jingui Silver. It trades about 0.15 of its total potential returns per unit of risk. Chenzhou Jingui Silver is currently generating about 0.22 per unit of volatility. If you would invest 274.00 in Chenzhou Jingui Silver on September 12, 2024 and sell it today you would earn a total of 128.00 from holding Chenzhou Jingui Silver or generate 46.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Chenzhou Jingui Silver
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Chenzhou Jingui Silver |
Jiangxi Naipu and Chenzhou Jingui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Chenzhou Jingui
The main advantage of trading using opposite Jiangxi Naipu and Chenzhou Jingui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, Chenzhou Jingui 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 Chenzhou Jingui will offset losses from the drop in Chenzhou Jingui's long position.| Jiangxi Naipu vs. Tonghua Grape Wine | Jiangxi Naipu vs. Hang Xiao Steel | Jiangxi Naipu vs. Beijing SPC Environment | Jiangxi Naipu vs. Panda Financial Holding |
| Chenzhou Jingui vs. Zijin Mining Group | Chenzhou Jingui vs. Wanhua Chemical Group | Chenzhou Jingui vs. Baoshan Iron Steel | Chenzhou Jingui 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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