Correlation Between Epoxy Base and Jiangxi JDL
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By analyzing existing cross correlation between Epoxy Base Electronic and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Epoxy Base 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 Epoxy Base with a short position of Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epoxy Base and Jiangxi JDL.
Diversification Opportunities for Epoxy Base and Jiangxi JDL
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Epoxy and Jiangxi is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Epoxy Base Electronic 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 Epoxy Base 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 Epoxy Base Electronic 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 Epoxy Base i.e., Epoxy Base and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Epoxy Base and Jiangxi JDL
Assuming the 90 days trading horizon Epoxy Base Electronic is expected to generate 3.23 times more return on investment than Jiangxi JDL. However, Epoxy Base is 3.23 times more volatile than Jiangxi JDL Environmental. It trades about 0.07 of its potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about 0.03 per unit of risk. If you would invest 522.00 in Epoxy Base Electronic on November 3, 2024 and sell it today you would earn a total of 18.00 from holding Epoxy Base Electronic or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epoxy Base Electronic vs. Jiangxi JDL Environmental
Performance |
| Timeline |
| Epoxy Base Electronic |
| Jiangxi JDL Environmental |
Epoxy Base and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epoxy Base and Jiangxi JDL
The main advantage of trading using opposite Epoxy Base and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epoxy Base 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.| Epoxy Base vs. Gan Yuan Foods | Epoxy Base vs. Xinjiang Baodi Mining | Epoxy Base vs. Tibet Huayu Mining | Epoxy Base vs. Ligao Foods CoLtd |
| Jiangxi JDL vs. Zhongrun Resources Investment | Jiangxi JDL vs. Linewell Software Co | Jiangxi JDL vs. Tieling Newcity Investment | Jiangxi JDL vs. Xiandai Investment Co |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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