Correlation Between Jiangxi Naipu and Shenzhen Silver
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Shenzhen Silver Basis, you can compare the effects of market volatilities on Jiangxi Naipu and Shenzhen Silver 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 Shenzhen Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Shenzhen Silver.
Diversification Opportunities for Jiangxi Naipu and Shenzhen Silver
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangxi and Shenzhen is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Shenzhen Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Shenzhen Silver
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to generate 0.64 times more return on investment than Shenzhen Silver. However, Jiangxi Naipu Mining is 1.56 times less risky than Shenzhen Silver. It trades about -0.43 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.69 per unit of risk. If you would invest 2,948 in Jiangxi Naipu Mining on October 7, 2024 and sell it today you would lose (352.00) from holding Jiangxi Naipu Mining or give up 11.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Shenzhen Silver Basis |
Jiangxi Naipu and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Shenzhen Silver
The main advantage of trading using opposite Jiangxi Naipu and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, Shenzhen Silver 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 Shenzhen Silver will offset losses from the drop in Shenzhen Silver's long position.| Jiangxi Naipu vs. BeiGene | Jiangxi Naipu vs. G bits Network Technology | Jiangxi Naipu vs. China Mobile Limited | Jiangxi Naipu vs. Gansu Jiu Steel |
| Shenzhen Silver vs. BeiGene | Shenzhen Silver vs. G bits Network Technology | Shenzhen Silver vs. China Mobile Limited | Shenzhen Silver vs. Gansu Jiu Steel |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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