Correlation Between Changjiang Jinggong and Jiangxi JDL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changjiang Jinggong Steel and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Changjiang Jinggong 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 Changjiang Jinggong with a short position of Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Jinggong and Jiangxi JDL.
Diversification Opportunities for Changjiang Jinggong and Jiangxi JDL
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changjiang and Jiangxi is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Jinggong Steel 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 Changjiang Jinggong 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 Changjiang Jinggong Steel 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 Changjiang Jinggong i.e., Changjiang Jinggong and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Changjiang Jinggong and Jiangxi JDL
Assuming the 90 days trading horizon Changjiang Jinggong Steel is expected to under-perform the Jiangxi JDL. But the stock apears to be less risky and, when comparing its historical volatility, Changjiang Jinggong Steel is 1.32 times less risky than Jiangxi JDL. The stock trades about -0.01 of its potential returns per unit of risk. The Jiangxi JDL Environmental is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,302 in Jiangxi JDL Environmental on August 25, 2024 and sell it today you would lose (143.00) from holding Jiangxi JDL Environmental or give up 10.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Jinggong Steel vs. Jiangxi JDL Environmental
Performance |
| Timeline |
| Changjiang Jinggong Steel |
| Jiangxi JDL Environmental |
Changjiang Jinggong and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Jinggong and Jiangxi JDL
The main advantage of trading using opposite Changjiang Jinggong and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Jinggong 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.| Changjiang Jinggong vs. Yingde Greatchem Chemicals | Changjiang Jinggong vs. Haima Automobile Group | Changjiang Jinggong vs. Zhengzhou Coal Mining | Changjiang Jinggong vs. Hubei Xingfa Chemicals |
| Jiangxi JDL vs. Guizhou BroadcastingTV Info | Jiangxi JDL vs. Xizi Clean Energy | Jiangxi JDL vs. Longjian Road Bridge | Jiangxi JDL vs. XinJiang GuoTong Pipeline |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |