Correlation Between Shanghai Xinhua and Jiangnan Mould
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By analyzing existing cross correlation between Shanghai Xinhua Media and Jiangnan Mould Plastic, you can compare the effects of market volatilities on Shanghai Xinhua 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 Shanghai Xinhua with a short position of Jiangnan Mould. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Xinhua and Jiangnan Mould.
Diversification Opportunities for Shanghai Xinhua and Jiangnan Mould
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Jiangnan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Xinhua Media 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 Shanghai Xinhua 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 Shanghai Xinhua Media 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 Shanghai Xinhua i.e., Shanghai Xinhua and Jiangnan Mould go up and down completely randomly.
Pair Corralation between Shanghai Xinhua and Jiangnan Mould
Assuming the 90 days trading horizon Shanghai Xinhua is expected to generate 8.71 times less return on investment than Jiangnan Mould. In addition to that, Shanghai Xinhua is 1.12 times more volatile than Jiangnan Mould Plastic. It trades about 0.02 of its total potential returns per unit of risk. Jiangnan Mould Plastic is currently generating about 0.15 per unit of volatility. If you would invest 676.00 in Jiangnan Mould Plastic on September 3, 2024 and sell it today you would earn a total of 69.00 from holding Jiangnan Mould Plastic or generate 10.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Xinhua Media vs. Jiangnan Mould Plastic
Performance |
| Timeline |
| Shanghai Xinhua Media |
| Jiangnan Mould Plastic |
Shanghai Xinhua and Jiangnan Mould Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Xinhua and Jiangnan Mould
The main advantage of trading using opposite Shanghai Xinhua and Jiangnan Mould positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Xinhua 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.| Shanghai Xinhua vs. Anhui Transport Consulting | Shanghai Xinhua vs. Jiangxi Naipu Mining | Shanghai Xinhua vs. Shengda Mining Co | Shanghai Xinhua vs. Broadex Technologies Co |
| Jiangnan Mould vs. PetroChina Co Ltd | Jiangnan Mould vs. China Mobile Limited | Jiangnan Mould vs. Industrial and Commercial | Jiangnan Mould vs. China Life Insurance |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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