Correlation Between Jiangxi Naipu and Guangdong Transtek
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Guangdong Transtek Medical, you can compare the effects of market volatilities on Jiangxi Naipu and Guangdong Transtek 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 Guangdong Transtek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Guangdong Transtek.
Diversification Opportunities for Jiangxi Naipu and Guangdong Transtek
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangxi and Guangdong is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and Guangdong Transtek Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Transtek 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 Guangdong Transtek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Transtek has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and Guangdong Transtek go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Guangdong Transtek
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to generate 0.23 times more return on investment than Guangdong Transtek. However, Jiangxi Naipu Mining is 4.27 times less risky than Guangdong Transtek. It trades about -0.3 of its potential returns per unit of risk. Guangdong Transtek Medical is currently generating about -0.11 per unit of risk. If you would invest 2,935 in Jiangxi Naipu Mining on October 12, 2024 and sell it today you would lose (279.00) from holding Jiangxi Naipu Mining or give up 9.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Guangdong Transtek Medical
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Guangdong Transtek |
Jiangxi Naipu and Guangdong Transtek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Guangdong Transtek
The main advantage of trading using opposite Jiangxi Naipu and Guangdong Transtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, Guangdong Transtek 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 Guangdong Transtek will offset losses from the drop in Guangdong Transtek's long position.| Jiangxi Naipu vs. Gansu Huangtai Wine marketing | Jiangxi Naipu vs. Dawning Information Industry | Jiangxi Naipu vs. Fiberhome Telecommunication Technologies | Jiangxi Naipu vs. Beijing Kingsoft Office |
| Guangdong Transtek vs. Shenzhen Silver Basis | Guangdong Transtek vs. Tianjin Silvery Dragon | Guangdong Transtek vs. Mango Excellent Media | Guangdong Transtek vs. Jiangxi Naipu 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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