Correlation Between Jiangxi Naipu and Anyang Iron
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Anyang Iron Steel, you can compare the effects of market volatilities on Jiangxi Naipu and Anyang Iron 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 Anyang Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Anyang Iron.
Diversification Opportunities for Jiangxi Naipu and Anyang Iron
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Anyang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and Anyang Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anyang Iron Steel 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 Anyang Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anyang Iron Steel has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and Anyang Iron go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Anyang Iron
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to generate 1.16 times more return on investment than Anyang Iron. However, Jiangxi Naipu is 1.16 times more volatile than Anyang Iron Steel. It trades about 0.05 of its potential returns per unit of risk. Anyang Iron Steel is currently generating about 0.0 per unit of risk. If you would invest 2,210 in Jiangxi Naipu Mining on September 14, 2024 and sell it today you would earn a total of 764.00 from holding Jiangxi Naipu Mining or generate 34.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Anyang Iron Steel
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Anyang Iron Steel |
Jiangxi Naipu and Anyang Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Anyang Iron
The main advantage of trading using opposite Jiangxi Naipu and Anyang Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, Anyang Iron 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 Anyang Iron will offset losses from the drop in Anyang Iron's long position.| Jiangxi Naipu vs. Cultural Investment Holdings | Jiangxi Naipu vs. Gome Telecom Equipment | Jiangxi Naipu vs. Holitech Technology Co | Jiangxi Naipu vs. Zotye Automobile Co |
| Anyang Iron vs. Jiangxi Naipu Mining | Anyang Iron vs. Servyou Software Group | Anyang Iron vs. Dhc Software Co | Anyang Iron vs. Shaanxi Meineng Clean |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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