Correlation Between Jiangxi Naipu and Beijing Jiaman
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Beijing Jiaman Dress, you can compare the effects of market volatilities on Jiangxi Naipu and Beijing Jiaman 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 Beijing Jiaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Beijing Jiaman.
Diversification Opportunities for Jiangxi Naipu and Beijing Jiaman
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Beijing is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and Beijing Jiaman Dress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Jiaman Dress 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 Beijing Jiaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Jiaman Dress has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and Beijing Jiaman go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Beijing Jiaman
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to generate 0.58 times more return on investment than Beijing Jiaman. However, Jiangxi Naipu Mining is 1.72 times less risky than Beijing Jiaman. It trades about -0.46 of its potential returns per unit of risk. Beijing Jiaman Dress is currently generating about -0.29 per unit of risk. If you would invest 3,001 in Jiangxi Naipu Mining on October 14, 2024 and sell it today you would lose (396.00) from holding Jiangxi Naipu Mining or give up 13.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Beijing Jiaman Dress
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Beijing Jiaman Dress |
Jiangxi Naipu and Beijing Jiaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Beijing Jiaman
The main advantage of trading using opposite Jiangxi Naipu and Beijing Jiaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, Beijing Jiaman 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 Beijing Jiaman will offset losses from the drop in Beijing Jiaman's long position.| Jiangxi Naipu vs. Sunny Loan Top | Jiangxi Naipu vs. Servyou Software Group | Jiangxi Naipu vs. Inspur Software Co | Jiangxi Naipu vs. China National Software |
| Beijing Jiaman vs. Jiangxi Naipu Mining | Beijing Jiaman vs. Uroica Mining Safety | Beijing Jiaman vs. Pengxin International Mining | Beijing Jiaman vs. XinJiang GuoTong Pipeline |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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