Correlation Between China Fund and Jiaozuo Wanfang
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By analyzing existing cross correlation between China Fund Management and Jiaozuo Wanfang Aluminum, you can compare the effects of market volatilities on China Fund and Jiaozuo Wanfang 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 China Fund with a short position of Jiaozuo Wanfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Fund and Jiaozuo Wanfang.
Diversification Opportunities for China Fund and Jiaozuo Wanfang
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Jiaozuo is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding China Fund Management and Jiaozuo Wanfang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiaozuo Wanfang Aluminum and China Fund 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 China Fund Management are associated (or correlated) with Jiaozuo Wanfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiaozuo Wanfang Aluminum has no effect on the direction of China Fund i.e., China Fund and Jiaozuo Wanfang go up and down completely randomly.
Pair Corralation between China Fund and Jiaozuo Wanfang
Assuming the 90 days trading horizon China Fund Management is expected to generate 0.08 times more return on investment than Jiaozuo Wanfang. However, China Fund Management is 12.83 times less risky than Jiaozuo Wanfang. It trades about 0.08 of its potential returns per unit of risk. Jiaozuo Wanfang Aluminum is currently generating about -0.14 per unit of risk. If you would invest 1,001 in China Fund Management on September 1, 2024 and sell it today you would earn a total of 4.00 from holding China Fund Management or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Fund Management vs. Jiaozuo Wanfang Aluminum
Performance |
| Timeline |
| China Fund Management |
| Jiaozuo Wanfang Aluminum |
China Fund and Jiaozuo Wanfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Fund and Jiaozuo Wanfang
The main advantage of trading using opposite China Fund and Jiaozuo Wanfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Fund position performs unexpectedly, Jiaozuo Wanfang 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 Jiaozuo Wanfang will offset losses from the drop in Jiaozuo Wanfang's long position.| China Fund vs. Industrial and Commercial | China Fund vs. Kweichow Moutai Co | China Fund vs. Agricultural Bank of | China Fund vs. China Mobile Limited |
| Jiaozuo Wanfang vs. Zijin Mining Group | Jiaozuo Wanfang vs. Wanhua Chemical Group | Jiaozuo Wanfang vs. Baoshan Iron Steel | Jiaozuo Wanfang vs. Shandong Gold Mining |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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