Correlation Between Ye Chiu and Jiangxi Naipu
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By analyzing existing cross correlation between Ye Chiu Metal and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Ye Chiu 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 Ye Chiu with a short position of Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Jiangxi Naipu.
Diversification Opportunities for Ye Chiu and Jiangxi Naipu
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 601388 and Jiangxi is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal 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 Ye Chiu 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 Ye Chiu Metal 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 Ye Chiu i.e., Ye Chiu and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Ye Chiu and Jiangxi Naipu
Assuming the 90 days trading horizon Ye Chiu Metal is expected to under-perform the Jiangxi Naipu. But the stock apears to be less risky and, when comparing its historical volatility, Ye Chiu Metal is 1.14 times less risky than Jiangxi Naipu. The stock trades about -0.01 of its potential returns per unit of risk. The Jiangxi Naipu Mining is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,423 in Jiangxi Naipu Mining on September 4, 2024 and sell it today you would earn a total of 1,525 from holding Jiangxi Naipu Mining or generate 107.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Jiangxi Naipu Mining
Performance |
| Timeline |
| Ye Chiu Metal |
| Jiangxi Naipu Mining |
Ye Chiu and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Jiangxi Naipu
The main advantage of trading using opposite Ye Chiu and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu 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.| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Rongsheng Petrochemical Co |
| Jiangxi Naipu vs. Pengxin International Mining | Jiangxi Naipu vs. Western Metal Materials | Jiangxi Naipu vs. Heilongjiang Transport Development | Jiangxi Naipu vs. Ye Chiu Metal |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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