Correlation Between Zoy Home and Jiangnan Mould
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By analyzing existing cross correlation between Zoy Home Furnishing and Jiangnan Mould Plastic, you can compare the effects of market volatilities on Zoy Home 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 Zoy Home with a short position of Jiangnan Mould. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Jiangnan Mould.
Diversification Opportunities for Zoy Home and Jiangnan Mould
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zoy and Jiangnan is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing 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 Zoy Home 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 Zoy Home Furnishing 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 Zoy Home i.e., Zoy Home and Jiangnan Mould go up and down completely randomly.
Pair Corralation between Zoy Home and Jiangnan Mould
Assuming the 90 days trading horizon Zoy Home is expected to generate 8.82 times less return on investment than Jiangnan Mould. In addition to that, Zoy Home is 1.13 times more volatile than Jiangnan Mould Plastic. It trades about 0.01 of its total potential returns per unit of risk. Jiangnan Mould Plastic is currently generating about 0.05 per unit of volatility. If you would invest 459.00 in Jiangnan Mould Plastic on September 5, 2024 and sell it today you would earn a total of 291.00 from holding Jiangnan Mould Plastic or generate 63.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoy Home Furnishing vs. Jiangnan Mould Plastic
Performance |
| Timeline |
| Zoy Home Furnishing |
| Jiangnan Mould Plastic |
Zoy Home and Jiangnan Mould Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Jiangnan Mould
The main advantage of trading using opposite Zoy Home and Jiangnan Mould positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home 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.| Zoy Home vs. Industrial and Commercial | Zoy Home vs. Agricultural Bank of | Zoy Home vs. China Construction Bank | Zoy Home vs. Bank of China |
| Jiangnan Mould vs. Cultural Investment Holdings | Jiangnan Mould vs. Gome Telecom Equipment | Jiangnan Mould vs. Bus Online Co | Jiangnan Mould vs. Holitech Technology 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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