Correlation Between Jiangxi Naipu and Kingclean Electric
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Kingclean Electric Co, you can compare the effects of market volatilities on Jiangxi Naipu and Kingclean Electric 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 Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Kingclean Electric.
Diversification Opportunities for Jiangxi Naipu and Kingclean Electric
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Kingclean is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric 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 Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and Kingclean Electric go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Kingclean Electric
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to generate 1.36 times more return on investment than Kingclean Electric. However, Jiangxi Naipu is 1.36 times more volatile than Kingclean Electric Co. It trades about 0.19 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about 0.05 per unit of risk. If you would invest 2,012 in Jiangxi Naipu Mining on August 28, 2024 and sell it today you would earn a total of 829.00 from holding Jiangxi Naipu Mining or generate 41.2% 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. Kingclean Electric Co
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Kingclean Electric |
Jiangxi Naipu and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Kingclean Electric
The main advantage of trading using opposite Jiangxi Naipu and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.| Jiangxi Naipu vs. Ming Yang Smart | Jiangxi Naipu vs. 159681 | Jiangxi Naipu vs. 159005 | Jiangxi Naipu vs. Loctek Ergonomic Technology |
| Kingclean Electric vs. Kweichow Moutai Co | Kingclean Electric vs. NAURA Technology Group | Kingclean Electric vs. Zhejiang Orient Gene | Kingclean Electric vs. APT Medical |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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