Correlation Between Jiangsu Yueda and Western Metal
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Western Metal Materials, you can compare the effects of market volatilities on Jiangsu Yueda and Western Metal 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 Jiangsu Yueda with a short position of Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Western Metal.
Diversification Opportunities for Jiangsu Yueda and Western Metal
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangsu and Western is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials and Jiangsu Yueda 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 Jiangsu Yueda Investment are associated (or correlated) with Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of Jiangsu Yueda i.e., Jiangsu Yueda and Western Metal go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Western Metal
Assuming the 90 days trading horizon Jiangsu Yueda is expected to generate 1.39 times less return on investment than Western Metal. In addition to that, Jiangsu Yueda is 1.05 times more volatile than Western Metal Materials. It trades about 0.02 of its total potential returns per unit of risk. Western Metal Materials is currently generating about 0.02 per unit of volatility. If you would invest 1,548 in Western Metal Materials on October 12, 2024 and sell it today you would earn a total of 167.00 from holding Western Metal Materials or generate 10.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Western Metal Materials
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Western Metal Materials |
Jiangsu Yueda and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Western Metal
The main advantage of trading using opposite Jiangsu Yueda and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal's long position.| Jiangsu Yueda vs. Duzhe Publishing Media | Jiangsu Yueda vs. Changjiang Publishing Media | Jiangsu Yueda vs. Southern PublishingMedia Co | Jiangsu Yueda vs. Guangzhou Jinyi Media |
| Western Metal vs. Xiandai Investment Co | Western Metal vs. Jiangsu Yueda Investment | Western Metal vs. Hunan Investment Group | Western Metal vs. Nanjing Vishee Medical |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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