Correlation Between China Marine and Jiangnan Mould
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By analyzing existing cross correlation between China Marine Information and Jiangnan Mould Plastic, you can compare the effects of market volatilities on China Marine 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 China Marine with a short position of Jiangnan Mould. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Marine and Jiangnan Mould.
Diversification Opportunities for China Marine and Jiangnan Mould
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Jiangnan is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding China Marine Information 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 China Marine 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 Marine Information 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 China Marine i.e., China Marine and Jiangnan Mould go up and down completely randomly.
Pair Corralation between China Marine and Jiangnan Mould
Assuming the 90 days trading horizon China Marine Information is expected to generate 1.03 times more return on investment than Jiangnan Mould. However, China Marine is 1.03 times more volatile than Jiangnan Mould Plastic. It trades about 0.04 of its potential returns per unit of risk. Jiangnan Mould Plastic is currently generating about 0.03 per unit of risk. If you would invest 2,300 in China Marine Information on September 12, 2024 and sell it today you would earn a total of 383.00 from holding China Marine Information or generate 16.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.58% |
| Values | Daily Returns |
China Marine Information vs. Jiangnan Mould Plastic
Performance |
| Timeline |
| China Marine Information |
| Jiangnan Mould Plastic |
China Marine and Jiangnan Mould Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Marine and Jiangnan Mould
The main advantage of trading using opposite China Marine and Jiangnan Mould positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Marine 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.| China Marine vs. Gansu Jiu Steel | China Marine vs. Shandong Mining Machinery | China Marine vs. Aba Chemicals Corp | China Marine vs. BlueFocus Communication Group |
| Jiangnan Mould vs. Suzhou Douson Drilling | Jiangnan Mould vs. Zhejiang Construction Investment | Jiangnan Mould vs. Xiandai Investment Co | Jiangnan Mould vs. Lander Sports Development |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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