Correlation Between Ye Chiu and Jiangxi JDL
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By analyzing existing cross correlation between Ye Chiu Metal and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Ye Chiu and Jiangxi JDL 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 JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Jiangxi JDL.
Diversification Opportunities for Ye Chiu and Jiangxi JDL
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 601388 and Jiangxi is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental 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 JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of Ye Chiu i.e., Ye Chiu and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Ye Chiu and Jiangxi JDL
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 1.32 times more return on investment than Jiangxi JDL. However, Ye Chiu is 1.32 times more volatile than Jiangxi JDL Environmental. It trades about 0.0 of its potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about -0.02 per unit of risk. If you would invest 265.00 in Ye Chiu Metal on October 30, 2024 and sell it today you would lose (31.00) from holding Ye Chiu Metal or give up 11.7% of portfolio value 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 JDL Environmental
Performance |
| Timeline |
| Ye Chiu Metal |
| Jiangxi JDL Environmental |
Ye Chiu and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Jiangxi JDL
The main advantage of trading using opposite Ye Chiu and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Jiangxi JDL 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 JDL will offset losses from the drop in Jiangxi JDL's long position.| Ye Chiu vs. Tianshan Aluminum Group | Ye Chiu vs. Suzhou Weizhixiang Food | Ye Chiu vs. Shanghai Yanpu Metal | Ye Chiu vs. CITIC Metal Co |
| Jiangxi JDL vs. Industrial and Commercial | Jiangxi JDL vs. Agricultural Bank of | Jiangxi JDL vs. China Construction Bank | Jiangxi JDL vs. Bank of China |
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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