Correlation Between Jiangxi Naipu and Dongguan Tarry
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangxi Naipu Mining and Dongguan Tarry Electronics, you can compare the effects of market volatilities on Jiangxi Naipu and Dongguan Tarry 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 Dongguan Tarry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Dongguan Tarry.
Diversification Opportunities for Jiangxi Naipu and Dongguan Tarry
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiangxi and Dongguan is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and Dongguan Tarry Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Tarry Elect 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 Dongguan Tarry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Tarry Elect has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and Dongguan Tarry go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Dongguan Tarry
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to generate 0.85 times more return on investment than Dongguan Tarry. However, Jiangxi Naipu Mining is 1.18 times less risky than Dongguan Tarry. It trades about 0.05 of its potential returns per unit of risk. Dongguan Tarry Electronics is currently generating about 0.04 per unit of risk. If you would invest 1,691 in Jiangxi Naipu Mining on November 7, 2024 and sell it today you would earn a total of 896.00 from holding Jiangxi Naipu Mining or generate 52.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Dongguan Tarry Electronics
Performance |
| Timeline |
| Jiangxi Naipu Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Dongguan Tarry Elect |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Jiangxi Naipu and Dongguan Tarry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Dongguan Tarry
The main advantage of trading using opposite Jiangxi Naipu and Dongguan Tarry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, Dongguan Tarry 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 Dongguan Tarry will offset losses from the drop in Dongguan Tarry's long position.The idea behind Jiangxi Naipu Mining and Dongguan Tarry Electronics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world |