Correlation Between Jiangxi Lianchuang and China Minmetals
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By analyzing existing cross correlation between Jiangxi Lianchuang Opto electronic and China Minmetals Rare, you can compare the effects of market volatilities on Jiangxi Lianchuang and China Minmetals 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 Jiangxi Lianchuang with a short position of China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Lianchuang and China Minmetals.
Diversification Opportunities for Jiangxi Lianchuang and China Minmetals
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangxi and China is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Lianchuang Opto electr and China Minmetals Rare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minmetals Rare and Jiangxi Lianchuang 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 Jiangxi Lianchuang Opto electronic are associated (or correlated) with China Minmetals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minmetals Rare has no effect on the direction of Jiangxi Lianchuang i.e., Jiangxi Lianchuang and China Minmetals go up and down completely randomly.
Pair Corralation between Jiangxi Lianchuang and China Minmetals
Assuming the 90 days trading horizon Jiangxi Lianchuang Opto electronic is expected to generate 1.49 times more return on investment than China Minmetals. However, Jiangxi Lianchuang is 1.49 times more volatile than China Minmetals Rare. It trades about 0.14 of its potential returns per unit of risk. China Minmetals Rare is currently generating about 0.07 per unit of risk. If you would invest 2,602 in Jiangxi Lianchuang Opto electronic on November 3, 2024 and sell it today you would earn a total of 2,206 from holding Jiangxi Lianchuang Opto electronic or generate 84.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Lianchuang Opto electr vs. China Minmetals Rare
Performance |
| Timeline |
| Jiangxi Lianchuang Opto |
| China Minmetals Rare |
Jiangxi Lianchuang and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Lianchuang and China Minmetals
The main advantage of trading using opposite Jiangxi Lianchuang and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Lianchuang position performs unexpectedly, China Minmetals 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 China Minmetals will offset losses from the drop in China Minmetals' long position.| Jiangxi Lianchuang vs. Jinhe Biotechnology Co | Jiangxi Lianchuang vs. Advanced Technology Materials | Jiangxi Lianchuang vs. Holitech Technology Co | Jiangxi Lianchuang vs. Guangzhou KingTeller Technology |
| China Minmetals vs. Xiangyang Automobile Bearing | China Minmetals vs. Anhui Jianghuai Automobile | China Minmetals vs. Iat Automobile Technology | China Minmetals vs. JCHX Mining Management |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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