Correlation Between Zhejiang Juhua and Jiangxi Copper
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By analyzing existing cross correlation between Zhejiang Juhua Co and Jiangxi Copper Co, you can compare the effects of market volatilities on Zhejiang Juhua 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 Zhejiang Juhua with a short position of Jiangxi Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Juhua and Jiangxi Copper.
Diversification Opportunities for Zhejiang Juhua and Jiangxi Copper
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zhejiang and Jiangxi is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Juhua Co and Jiangxi Copper Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Copper and Zhejiang Juhua 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 Zhejiang Juhua Co 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 Zhejiang Juhua i.e., Zhejiang Juhua and Jiangxi Copper go up and down completely randomly.
Pair Corralation between Zhejiang Juhua and Jiangxi Copper
Assuming the 90 days trading horizon Zhejiang Juhua Co is expected to generate 1.82 times more return on investment than Jiangxi Copper. However, Zhejiang Juhua is 1.82 times more volatile than Jiangxi Copper Co. It trades about 0.19 of its potential returns per unit of risk. Jiangxi Copper Co is currently generating about 0.04 per unit of risk. If you would invest 2,400 in Zhejiang Juhua Co on October 23, 2024 and sell it today you would earn a total of 220.00 from holding Zhejiang Juhua Co or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Juhua Co vs. Jiangxi Copper Co
Performance |
| Timeline |
| Zhejiang Juhua |
| Jiangxi Copper |
Zhejiang Juhua and Jiangxi Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Juhua and Jiangxi Copper
The main advantage of trading using opposite Zhejiang Juhua and Jiangxi Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Juhua 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.| Zhejiang Juhua vs. Beijing Yanjing Brewery | Zhejiang Juhua vs. Eastroc Beverage Group | Zhejiang Juhua vs. Youyou Foods Co | Zhejiang Juhua vs. Jiangsu Yanghe Brewery |
| Jiangxi Copper vs. Zijin Mining Group | Jiangxi Copper vs. Wanhua Chemical Group | Jiangxi Copper vs. Baoshan Iron Steel | Jiangxi Copper 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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