Correlation Between Gem Year and Jiangxi Naipu
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By analyzing existing cross correlation between Gem Year Industrial Co and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Jiangxi Naipu.
Diversification Opportunities for Gem Year and Jiangxi Naipu
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gem and Jiangxi is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co 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 Gem Year 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 Gem Year Industrial Co 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 Gem Year i.e., Gem Year and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Gem Year and Jiangxi Naipu
Assuming the 90 days trading horizon Gem Year is expected to generate 31.65 times less return on investment than Jiangxi Naipu. But when comparing it to its historical volatility, Gem Year Industrial Co is 1.28 times less risky than Jiangxi Naipu. It trades about 0.0 of its potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,526 in Jiangxi Naipu Mining on October 12, 2024 and sell it today you would earn a total of 1,130 from holding Jiangxi Naipu Mining or generate 74.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Jiangxi Naipu Mining
Performance |
| Timeline |
| Gem Year Industrial |
| Jiangxi Naipu Mining |
Gem Year and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Jiangxi Naipu
The main advantage of trading using opposite Gem Year and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. Shaanxi Meineng Clean | Gem Year vs. Duzhe Publishing Media | Gem Year vs. Tinavi Medical Technologies | Gem Year vs. Shandong Publishing Media |
| Jiangxi Naipu vs. Gansu Huangtai Wine marketing | Jiangxi Naipu vs. Dawning Information Industry | Jiangxi Naipu vs. Fiberhome Telecommunication Technologies | Jiangxi Naipu vs. Beijing Kingsoft Office |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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