Correlation Between Xinjiang Tianrun and Jiangxi Naipu
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Xinjiang Tianrun and Jiangxi Naipu 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 Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Jiangxi Naipu.
Diversification Opportunities for Xinjiang Tianrun and Jiangxi Naipu
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Jiangxi is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy and Jiangxi Naipu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Naipu Mining 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 Jiangxi Naipu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Naipu Mining has no effect on the direction of Xinjiang Tianrun i.e., Xinjiang Tianrun and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Jiangxi Naipu
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to under-perform the Jiangxi Naipu. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Tianrun Dairy is 1.36 times less risky than Jiangxi Naipu. The stock trades about -0.04 of its potential returns per unit of risk. The Jiangxi Naipu Mining is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,941 in Jiangxi Naipu Mining on September 12, 2024 and sell it today you would earn a total of 1,024 from holding Jiangxi Naipu Mining or generate 52.76% 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. Jiangxi Naipu Mining
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Jiangxi Naipu Mining |
Xinjiang Tianrun and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Jiangxi Naipu
The main advantage of trading using opposite Xinjiang Tianrun and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun position performs unexpectedly, Jiangxi Naipu 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 Naipu will offset losses from the drop in Jiangxi Naipu's long position.| Xinjiang Tianrun vs. China Petroleum Chemical | Xinjiang Tianrun vs. PetroChina Co Ltd | Xinjiang Tianrun vs. China State Construction | Xinjiang Tianrun vs. China Railway Group |
| Jiangxi Naipu vs. Agricultural Bank of | Jiangxi Naipu vs. Industrial and Commercial | Jiangxi Naipu vs. Bank of China | Jiangxi Naipu vs. PetroChina Co Ltd |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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