Correlation Between Xilinmen Furniture and Jiangnan Mould
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xilinmen Furniture Co and Jiangnan Mould Plastic, you can compare the effects of market volatilities on Xilinmen Furniture and Jiangnan Mould 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 Xilinmen Furniture with a short position of Jiangnan Mould. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilinmen Furniture and Jiangnan Mould.
Diversification Opportunities for Xilinmen Furniture and Jiangnan Mould
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xilinmen and Jiangnan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Xilinmen Furniture Co and Jiangnan Mould Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangnan Mould Plastic and Xilinmen Furniture 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 Xilinmen Furniture Co are associated (or correlated) with Jiangnan Mould. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangnan Mould Plastic has no effect on the direction of Xilinmen Furniture i.e., Xilinmen Furniture and Jiangnan Mould go up and down completely randomly.
Pair Corralation between Xilinmen Furniture and Jiangnan Mould
Assuming the 90 days trading horizon Xilinmen Furniture Co is expected to under-perform the Jiangnan Mould. But the stock apears to be less risky and, when comparing its historical volatility, Xilinmen Furniture Co is 1.13 times less risky than Jiangnan Mould. The stock trades about -0.06 of its potential returns per unit of risk. The Jiangnan Mould Plastic is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 789.00 in Jiangnan Mould Plastic on September 12, 2024 and sell it today you would lose (14.00) from holding Jiangnan Mould Plastic or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilinmen Furniture Co vs. Jiangnan Mould Plastic
Performance |
| Timeline |
| Xilinmen Furniture |
| Jiangnan Mould Plastic |
Xilinmen Furniture and Jiangnan Mould Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilinmen Furniture and Jiangnan Mould
The main advantage of trading using opposite Xilinmen Furniture and Jiangnan Mould positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilinmen Furniture position performs unexpectedly, Jiangnan Mould 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 Jiangnan Mould will offset losses from the drop in Jiangnan Mould's long position.| Xilinmen Furniture vs. Lutian Machinery Co | Xilinmen Furniture vs. PetroChina Co Ltd | Xilinmen Furniture vs. Bank of China | Xilinmen Furniture vs. Gansu Jiu Steel |
| Jiangnan Mould vs. Suzhou Douson Drilling | Jiangnan Mould vs. Zhejiang Construction Investment | Jiangnan Mould vs. Xiandai Investment Co | Jiangnan Mould vs. Lander Sports Development |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |