Correlation Between Jiangxi Naipu and Tibet Huayu
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Tibet Huayu Mining, you can compare the effects of market volatilities on Jiangxi Naipu and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Tibet Huayu.
Diversification Opportunities for Jiangxi Naipu and Tibet Huayu
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Tibet is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and Tibet Huayu go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Tibet Huayu
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to under-perform the Tibet Huayu. But the stock apears to be less risky and, when comparing its historical volatility, Jiangxi Naipu Mining is 1.43 times less risky than Tibet Huayu. The stock trades about -0.17 of its potential returns per unit of risk. The Tibet Huayu Mining is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,312 in Tibet Huayu Mining on October 27, 2024 and sell it today you would earn a total of 92.00 from holding Tibet Huayu Mining or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Tibet Huayu Mining
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Tibet Huayu Mining |
Jiangxi Naipu and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Tibet Huayu
The main advantage of trading using opposite Jiangxi Naipu and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu'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 |
| Tibet Huayu vs. Northern United Publishing | Tibet Huayu vs. Chinese Universe Publishing | Tibet Huayu vs. Shandong Publishing Media | Tibet Huayu vs. Offcn Education Technology |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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