Correlation Between Jiangxi Naipu and Hengerda New
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Hengerda New Materials, you can compare the effects of market volatilities on Jiangxi Naipu and Hengerda New 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 Hengerda New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Hengerda New.
Diversification Opportunities for Jiangxi Naipu and Hengerda New
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Hengerda is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and Hengerda New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengerda New Materials 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 Hengerda New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengerda New Materials has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and Hengerda New go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Hengerda New
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to under-perform the Hengerda New. But the stock apears to be less risky and, when comparing its historical volatility, Jiangxi Naipu Mining is 1.51 times less risky than Hengerda New. The stock trades about -0.17 of its potential returns per unit of risk. The Hengerda New Materials is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 2,862 in Hengerda New Materials on October 27, 2024 and sell it today you would lose (98.00) from holding Hengerda New Materials or give up 3.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Hengerda New Materials
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Hengerda New Materials |
Jiangxi Naipu and Hengerda New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Hengerda New
The main advantage of trading using opposite Jiangxi Naipu and Hengerda New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, Hengerda New 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 Hengerda New will offset losses from the drop in Hengerda New's long position.| Jiangxi Naipu vs. Miracll Chemicals Co | Jiangxi Naipu vs. Hengli Petrochemical Co | Jiangxi Naipu vs. AVIC Fund Management | Jiangxi Naipu vs. Xilong Chemical Co |
| Hengerda New vs. Industrial and Commercial | Hengerda New vs. China Construction Bank | Hengerda New vs. Agricultural Bank of | Hengerda New vs. Bank of China |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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