Correlation Between Jinxiandai Information and Fujian Nanwang
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By analyzing existing cross correlation between Jinxiandai Information Industry and Fujian Nanwang Environment, you can compare the effects of market volatilities on Jinxiandai Information and Fujian Nanwang 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 Jinxiandai Information with a short position of Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinxiandai Information and Fujian Nanwang.
Diversification Opportunities for Jinxiandai Information and Fujian Nanwang
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinxiandai and Fujian is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jinxiandai Information Industr and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir and Jinxiandai Information 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 Jinxiandai Information Industry are associated (or correlated) with Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Jinxiandai Information i.e., Jinxiandai Information and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Jinxiandai Information and Fujian Nanwang
Assuming the 90 days trading horizon Jinxiandai Information Industry is expected to under-perform the Fujian Nanwang. In addition to that, Jinxiandai Information is 2.23 times more volatile than Fujian Nanwang Environment. It trades about -0.31 of its total potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.28 per unit of volatility. If you would invest 1,279 in Fujian Nanwang Environment on October 12, 2024 and sell it today you would earn a total of 141.00 from holding Fujian Nanwang Environment or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinxiandai Information Industr vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Jinxiandai Information |
| Fujian Nanwang Envir |
Jinxiandai Information and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinxiandai Information and Fujian Nanwang
The main advantage of trading using opposite Jinxiandai Information and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinxiandai Information position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.The idea behind Jinxiandai Information Industry and Fujian Nanwang Environment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Fujian Nanwang vs. Jinxiandai Information Industry | Fujian Nanwang vs. Leyard Optoelectronic | Fujian Nanwang vs. Success Electronics | Fujian Nanwang vs. Jinlong Machinery Electronic |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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