Correlation Between Jiangxi Naipu and VT Industrial
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By analyzing existing cross correlation between Jiangxi Naipu Mining and VT Industrial Technology, you can compare the effects of market volatilities on Jiangxi Naipu and VT Industrial 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 VT Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and VT Industrial.
Diversification Opportunities for Jiangxi Naipu and VT Industrial
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and 300707 is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and VT Industrial Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VT Industrial Technology 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 VT Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VT Industrial Technology has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and VT Industrial go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and VT Industrial
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to under-perform the VT Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Jiangxi Naipu Mining is 1.65 times less risky than VT Industrial. The stock trades about 0.0 of its potential returns per unit of risk. The VT Industrial Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,367 in VT Industrial Technology on November 4, 2024 and sell it today you would earn a total of 69.00 from holding VT Industrial Technology or generate 5.05% 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. VT Industrial Technology
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| VT Industrial Technology |
Jiangxi Naipu and VT Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and VT Industrial
The main advantage of trading using opposite Jiangxi Naipu and VT Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, VT Industrial 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 VT Industrial will offset losses from the drop in VT Industrial's long position.| Jiangxi Naipu vs. Wangneng Environment Co | Jiangxi Naipu vs. Sinosteel Engineering and | Jiangxi Naipu vs. City Development Environment | Jiangxi Naipu vs. Qiaoyin Environmental Tech |
| VT Industrial vs. Jiangsu GDK Biotechnology | VT Industrial vs. Vats Liquor Chain | VT Industrial vs. Guangdong Marubi Biotechnology | VT Industrial vs. Yili Chuanning Biotechnology |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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