Correlation Between Dawning Information and Jiangnan Mould
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By analyzing existing cross correlation between Dawning Information Industry and Jiangnan Mould Plastic, you can compare the effects of market volatilities on Dawning Information 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 Dawning Information with a short position of Jiangnan Mould. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Jiangnan Mould.
Diversification Opportunities for Dawning Information and Jiangnan Mould
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dawning and Jiangnan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry 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 Dawning Information 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 Dawning Information Industry 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 Dawning Information i.e., Dawning Information and Jiangnan Mould go up and down completely randomly.
Pair Corralation between Dawning Information and Jiangnan Mould
Assuming the 90 days trading horizon Dawning Information Industry is expected to under-perform the Jiangnan Mould. In addition to that, Dawning Information is 1.5 times more volatile than Jiangnan Mould Plastic. It trades about -0.02 of its total potential returns per unit of risk. Jiangnan Mould Plastic is currently generating about 0.08 per unit of volatility. If you would invest 675.00 in Jiangnan Mould Plastic on November 3, 2024 and sell it today you would earn a total of 16.00 from holding Jiangnan Mould Plastic or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dawning Information Industry vs. Jiangnan Mould Plastic
Performance |
| Timeline |
| Dawning Information |
| Jiangnan Mould Plastic |
Dawning Information and Jiangnan Mould Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and Jiangnan Mould
The main advantage of trading using opposite Dawning Information and Jiangnan Mould positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information 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.| Dawning Information vs. Industrial and Commercial | Dawning Information vs. Kweichow Moutai Co | Dawning Information vs. Agricultural Bank of | Dawning Information vs. China Mobile Limited |
| Jiangnan Mould vs. Sinosteel Engineering and | Jiangnan Mould vs. Qiaoyin Environmental Tech | Jiangnan Mould vs. Fujian Nanwang Environment | Jiangnan Mould vs. Guangdong Ellington Electronics |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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