Correlation Between Jiangxi Naipu and GuoChuang Software
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By analyzing existing cross correlation between Jiangxi Naipu Mining and GuoChuang Software Co, you can compare the effects of market volatilities on Jiangxi Naipu and GuoChuang Software 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 GuoChuang Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and GuoChuang Software.
Diversification Opportunities for Jiangxi Naipu and GuoChuang Software
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and GuoChuang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and GuoChuang Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GuoChuang Software 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 GuoChuang Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GuoChuang Software has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and GuoChuang Software go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and GuoChuang Software
Assuming the 90 days trading horizon Jiangxi Naipu is expected to generate 1.51 times less return on investment than GuoChuang Software. But when comparing it to its historical volatility, Jiangxi Naipu Mining is 2.18 times less risky than GuoChuang Software. It trades about 0.14 of its potential returns per unit of risk. GuoChuang Software Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,482 in GuoChuang Software Co on September 4, 2024 and sell it today you would earn a total of 192.00 from holding GuoChuang Software Co or generate 7.74% 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. GuoChuang Software Co
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| GuoChuang Software |
Jiangxi Naipu and GuoChuang Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and GuoChuang Software
The main advantage of trading using opposite Jiangxi Naipu and GuoChuang Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, GuoChuang Software 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 GuoChuang Software will offset losses from the drop in GuoChuang Software's long position.| Jiangxi Naipu vs. Pengxin International Mining | Jiangxi Naipu vs. Western Metal Materials | Jiangxi Naipu vs. Heilongjiang Transport Development | Jiangxi Naipu vs. Ye Chiu Metal |
| GuoChuang Software vs. Jiangxi Naipu Mining | GuoChuang Software vs. Chenzhou Jingui Silver | GuoChuang Software vs. Hainan Mining Co | GuoChuang Software vs. JCHX Mining Management |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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