Correlation Between Ningbo Jintian and Jiangxi JDL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Jintian Copper and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Ningbo Jintian 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 Ningbo Jintian with a short position of Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jintian and Jiangxi JDL.
Diversification Opportunities for Ningbo Jintian and Jiangxi JDL
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Jiangxi is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jintian Copper 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 Ningbo Jintian 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 Ningbo Jintian Copper 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 Ningbo Jintian i.e., Ningbo Jintian and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Ningbo Jintian and Jiangxi JDL
Assuming the 90 days trading horizon Ningbo Jintian Copper is expected to under-perform the Jiangxi JDL. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Jintian Copper is 1.1 times less risky than Jiangxi JDL. The stock trades about -0.01 of its potential returns per unit of risk. The Jiangxi JDL Environmental is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,294 in Jiangxi JDL Environmental on October 16, 2024 and sell it today you would lose (212.00) from holding Jiangxi JDL Environmental or give up 16.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jintian Copper vs. Jiangxi JDL Environmental
Performance |
| Timeline |
| Ningbo Jintian Copper |
| Jiangxi JDL Environmental |
Ningbo Jintian and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jintian and Jiangxi JDL
The main advantage of trading using opposite Ningbo Jintian and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jintian 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.| Ningbo Jintian vs. Winner Medical Co | Ningbo Jintian vs. Marssenger Kitchenware Co | Ningbo Jintian vs. China World Trade | Ningbo Jintian vs. Allmed Medical Products |
| Jiangxi JDL vs. Ye Chiu Metal | Jiangxi JDL vs. JCHX Mining Management | Jiangxi JDL vs. Ningbo Jintian Copper | Jiangxi JDL vs. Western Metal Materials |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |