Correlation Between Jiangxi Naipu and Chengdu Spaceon
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Jiangxi Naipu and Chengdu Spaceon 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 Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Chengdu Spaceon.
Diversification Opportunities for Jiangxi Naipu and Chengdu Spaceon
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Chengdu is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Chengdu Spaceon
Assuming the 90 days trading horizon Jiangxi Naipu is expected to generate 1.07 times less return on investment than Chengdu Spaceon. But when comparing it to its historical volatility, Jiangxi Naipu Mining is 1.07 times less risky than Chengdu Spaceon. It trades about 0.06 of its potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,269 in Chengdu Spaceon Electronics on October 16, 2024 and sell it today you would earn a total of 201.00 from holding Chengdu Spaceon Electronics or generate 15.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Chengdu Spaceon Elec |
Jiangxi Naipu and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Chengdu Spaceon
The main advantage of trading using opposite Jiangxi Naipu and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon's long position.| Jiangxi Naipu vs. Telling Telecommunication Holding | Jiangxi Naipu vs. Runjian Communication Co | Jiangxi Naipu vs. Strait Innovation Internet | Jiangxi Naipu vs. Guangzhou Haige Communications |
| Chengdu Spaceon vs. Qingdao Haier Biomedical | Chengdu Spaceon vs. Shanghai Sanyou Medical | Chengdu Spaceon vs. Chison Medical Technologies | Chengdu Spaceon vs. Shanghai Phichem Material |
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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