Correlation Between Jiangxi Naipu and China Building
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By analyzing existing cross correlation between Jiangxi Naipu Mining and China Building Material, you can compare the effects of market volatilities on Jiangxi Naipu and China Building 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 China Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and China Building.
Diversification Opportunities for Jiangxi Naipu and China Building
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangxi and China is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and China Building Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Building Material 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 China Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Building Material has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and China Building go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and China Building
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to generate 1.06 times more return on investment than China Building. However, Jiangxi Naipu is 1.06 times more volatile than China Building Material. It trades about -0.18 of its potential returns per unit of risk. China Building Material is currently generating about -0.21 per unit of risk. If you would invest 2,900 in Jiangxi Naipu Mining on October 24, 2024 and sell it today you would lose (213.00) from holding Jiangxi Naipu Mining or give up 7.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. China Building Material
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| China Building Material |
Jiangxi Naipu and China Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and China Building
The main advantage of trading using opposite Jiangxi Naipu and China Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, China Building 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 China Building will offset losses from the drop in China Building's long position.| Jiangxi Naipu vs. ZJBC Information Technology | Jiangxi Naipu vs. Beijing Sanyuan Foods | Jiangxi Naipu vs. Eastroc Beverage Group | Jiangxi Naipu vs. HaiXin Foods Co |
| China Building vs. Southern PublishingMedia Co | China Building vs. Jiangxi Naipu Mining | China Building vs. Chinese Universe Publishing | China Building vs. Guangdong Silvere Sci |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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