Correlation Between Jiangxi Naipu and Ming Yang
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Ming Yang Smart, you can compare the effects of market volatilities on Jiangxi Naipu and Ming Yang 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 Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Ming Yang.
Diversification Opportunities for Jiangxi Naipu and Ming Yang
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Ming is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and Ming Yang Smart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Yang Smart 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 Ming Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Yang Smart has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and Ming Yang go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Ming Yang
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to generate 1.13 times more return on investment than Ming Yang. However, Jiangxi Naipu is 1.13 times more volatile than Ming Yang Smart. It trades about 0.06 of its potential returns per unit of risk. Ming Yang Smart is currently generating about 0.04 per unit of risk. If you would invest 1,893 in Jiangxi Naipu Mining on November 3, 2024 and sell it today you would earn a total of 694.00 from holding Jiangxi Naipu Mining or generate 36.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Ming Yang Smart
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Ming Yang Smart |
Jiangxi Naipu and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Ming Yang
The main advantage of trading using opposite Jiangxi Naipu and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, Ming Yang 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 Ming Yang will offset losses from the drop in Ming Yang's long position.| Jiangxi Naipu vs. Chengdu Xinzhu RoadBridge | Jiangxi Naipu vs. Hainan Haiqi Transportation | Jiangxi Naipu vs. XiAn Dagang Road | Jiangxi Naipu vs. Huaibei Mining Holdings |
| Ming Yang vs. Guangzhou KDT Machinery | Ming Yang vs. Longjian Road Bridge | Ming Yang vs. Tjk Machinery Tianjin | Ming Yang vs. Shenzhen Zhongzhuang Construction |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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