Correlation Between Xinjiang Tianrun and Jiangnan Mould
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Jiangnan Mould Plastic, you can compare the effects of market volatilities on Xinjiang Tianrun 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 Xinjiang Tianrun with a short position of Jiangnan Mould. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Jiangnan Mould.
Diversification Opportunities for Xinjiang Tianrun and Jiangnan Mould
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Jiangnan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy 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 Xinjiang Tianrun 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 Xinjiang Tianrun Dairy 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 Xinjiang Tianrun i.e., Xinjiang Tianrun and Jiangnan Mould go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Jiangnan Mould
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to under-perform the Jiangnan Mould. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Tianrun Dairy is 1.32 times less risky than Jiangnan Mould. The stock trades about -0.05 of its potential returns per unit of risk. The Jiangnan Mould Plastic is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 511.00 in Jiangnan Mould Plastic on October 16, 2024 and sell it today you would earn a total of 152.00 from holding Jiangnan Mould Plastic or generate 29.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Jiangnan Mould Plastic
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Jiangnan Mould Plastic |
Xinjiang Tianrun and Jiangnan Mould Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Jiangnan Mould
The main advantage of trading using opposite Xinjiang Tianrun and Jiangnan Mould positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun 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.| Xinjiang Tianrun vs. Henan Shuanghui Investment | Xinjiang Tianrun vs. Hunan Investment Group | Xinjiang Tianrun vs. Harbin Hatou Investment | Xinjiang Tianrun vs. Shandong Polymer Biochemicals |
| Jiangnan Mould vs. Tianjin Ruixin Technology | Jiangnan Mould vs. 360 Security Technology | Jiangnan Mould vs. Eyebright Medical Technology | Jiangnan Mould vs. China Eastern Airlines |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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