Correlation Between Inner Mongolia and Jiangxi Copper
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By analyzing existing cross correlation between Inner Mongolia BaoTou and Jiangxi Copper Co, you can compare the effects of market volatilities on Inner Mongolia and Jiangxi Copper 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 Inner Mongolia with a short position of Jiangxi Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Jiangxi Copper.
Diversification Opportunities for Inner Mongolia and Jiangxi Copper
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inner and Jiangxi is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou and Jiangxi Copper Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Copper and Inner Mongolia 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 Inner Mongolia BaoTou are associated (or correlated) with Jiangxi Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Copper has no effect on the direction of Inner Mongolia i.e., Inner Mongolia and Jiangxi Copper go up and down completely randomly.
Pair Corralation between Inner Mongolia and Jiangxi Copper
Assuming the 90 days trading horizon Inner Mongolia BaoTou is expected to generate 0.8 times more return on investment than Jiangxi Copper. However, Inner Mongolia BaoTou is 1.25 times less risky than Jiangxi Copper. It trades about -0.12 of its potential returns per unit of risk. Jiangxi Copper Co is currently generating about -0.17 per unit of risk. If you would invest 187.00 in Inner Mongolia BaoTou on January 25, 2025 and sell it today you would lose (11.00) from holding Inner Mongolia BaoTou or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia BaoTou vs. Jiangxi Copper Co
Performance |
| Timeline |
| Inner Mongolia BaoTou |
| Jiangxi Copper |
Inner Mongolia and Jiangxi Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Jiangxi Copper
The main advantage of trading using opposite Inner Mongolia and Jiangxi Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia position performs unexpectedly, Jiangxi Copper 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 Jiangxi Copper will offset losses from the drop in Jiangxi Copper's long position.| Inner Mongolia vs. China Minmetals Rare | Inner Mongolia vs. Lonkey Industrial Co | Inner Mongolia vs. Yoantion Industrial IncLtd | Inner Mongolia vs. Hainan Mining Co |
| Jiangxi Copper vs. Wuxi Chemical Equipment | Jiangxi Copper vs. Ningbo Bohui Chemical | Jiangxi Copper vs. Beijing Jiaman Dress | Jiangxi Copper vs. Xilong Chemical Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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