Correlation Between China Merchants and Jiangnan Mould
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By analyzing existing cross correlation between China Merchants Bank and Jiangnan Mould Plastic, you can compare the effects of market volatilities on China Merchants and Jiangnan Mould 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 Merchants with a short position of Jiangnan Mould. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Jiangnan Mould.
Diversification Opportunities for China Merchants and Jiangnan Mould
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Jiangnan is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Bank and Jiangnan Mould Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangnan Mould Plastic and China Merchants 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 Merchants Bank are associated (or correlated) with Jiangnan Mould. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangnan Mould Plastic has no effect on the direction of China Merchants i.e., China Merchants and Jiangnan Mould go up and down completely randomly.
Pair Corralation between China Merchants and Jiangnan Mould
Assuming the 90 days trading horizon China Merchants Bank is expected to generate 0.59 times more return on investment than Jiangnan Mould. However, China Merchants Bank is 1.69 times less risky than Jiangnan Mould. It trades about 0.29 of its potential returns per unit of risk. Jiangnan Mould Plastic is currently generating about 0.08 per unit of risk. If you would invest 3,851 in China Merchants Bank on November 3, 2024 and sell it today you would earn a total of 214.00 from holding China Merchants Bank or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Bank vs. Jiangnan Mould Plastic
Performance |
| Timeline |
| China Merchants Bank |
| Jiangnan Mould Plastic |
China Merchants and Jiangnan Mould Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Jiangnan Mould
The main advantage of trading using opposite China Merchants and Jiangnan Mould positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants position performs unexpectedly, Jiangnan Mould 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 Jiangnan Mould will offset losses from the drop in Jiangnan Mould's long position.| China Merchants vs. Thinkon Semiconductor Jinzhou | China Merchants vs. Linzhou Heavy Machinery | China Merchants vs. Anhui Huilong Agricultural | China Merchants vs. Shantui Construction Machinery |
| Jiangnan Mould vs. Sinosteel Engineering and | Jiangnan Mould vs. Qiaoyin Environmental Tech | Jiangnan Mould vs. Fujian Nanwang Environment | Jiangnan Mould vs. Guangdong Ellington Electronics |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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