Correlation Between China Fortune and Jiangxi JDL
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Fortune Land and Jiangxi JDL Environmental, you can compare the effects of market volatilities on China Fortune and Jiangxi JDL 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 Fortune with a short position of Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Fortune and Jiangxi JDL.
Diversification Opportunities for China Fortune and Jiangxi JDL
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Jiangxi is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding China Fortune Land and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental and China Fortune 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 Fortune Land are associated (or correlated) with Jiangxi JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of China Fortune i.e., China Fortune and Jiangxi JDL go up and down completely randomly.
Pair Corralation between China Fortune and Jiangxi JDL
Assuming the 90 days trading horizon China Fortune Land is expected to generate 1.79 times more return on investment than Jiangxi JDL. However, China Fortune is 1.79 times more volatile than Jiangxi JDL Environmental. It trades about 0.02 of its potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about -0.01 per unit of risk. If you would invest 274.00 in China Fortune Land on November 19, 2024 and sell it today you would lose (4.00) from holding China Fortune Land or give up 1.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Fortune Land vs. Jiangxi JDL Environmental
Performance |
| Timeline |
| China Fortune Land |
| Jiangxi JDL Environmental |
China Fortune and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Fortune and Jiangxi JDL
The main advantage of trading using opposite China Fortune and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Fortune position performs unexpectedly, Jiangxi JDL 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 JDL will offset losses from the drop in Jiangxi JDL's long position.| China Fortune vs. VeriSilicon Microelectronics Shanghai | China Fortune vs. Henan Shuanghui Investment | China Fortune vs. Guangzhou Jointas Chemical | China Fortune vs. Harson Trading China |
| Jiangxi JDL vs. Quectel Wireless Solutions | Jiangxi JDL vs. Pengxin International Mining | Jiangxi JDL vs. China Mobile Limited | Jiangxi JDL vs. Chenzhou Jingui Silver |
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.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |