Correlation Between Jiangxi Naipu and Shanghai Xinhua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangxi Naipu Mining and Shanghai Xinhua Media, you can compare the effects of market volatilities on Jiangxi Naipu and Shanghai Xinhua 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 Shanghai Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Shanghai Xinhua.
Diversification Opportunities for Jiangxi Naipu and Shanghai Xinhua
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangxi and Shanghai is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and Shanghai Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Xinhua Media 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 Shanghai Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Xinhua Media has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and Shanghai Xinhua go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Shanghai Xinhua
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to under-perform the Shanghai Xinhua. But the stock apears to be less risky and, when comparing its historical volatility, Jiangxi Naipu Mining is 1.86 times less risky than Shanghai Xinhua. The stock trades about -0.28 of its potential returns per unit of risk. The Shanghai Xinhua Media is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 615.00 in Shanghai Xinhua Media on December 1, 2024 and sell it today you would earn a total of 77.00 from holding Shanghai Xinhua Media or generate 12.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Shanghai Xinhua Media
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Shanghai Xinhua Media |
Jiangxi Naipu and Shanghai Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Shanghai Xinhua
The main advantage of trading using opposite Jiangxi Naipu and Shanghai Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, Shanghai Xinhua 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 Shanghai Xinhua will offset losses from the drop in Shanghai Xinhua's long position.| Jiangxi Naipu vs. Longxing Chemical Stock | Jiangxi Naipu vs. Shenzhen Centralcon Investment | Jiangxi Naipu vs. Jinsanjiang Silicon Material | Jiangxi Naipu vs. China Asset Management |
| Shanghai Xinhua vs. Kuang Chi Technologies | Shanghai Xinhua vs. ChengDu Hi Tech Development | Shanghai Xinhua vs. Fiberhome Telecommunication Technologies | Shanghai Xinhua vs. Shanghai Yanpu Metal |
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.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |