Correlation Between Nanjing Canatal and Jiangxi Selon
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By analyzing existing cross correlation between Nanjing Canatal Data and Jiangxi Selon Industrial, you can compare the effects of market volatilities on Nanjing Canatal and Jiangxi Selon 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 Nanjing Canatal with a short position of Jiangxi Selon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Canatal and Jiangxi Selon.
Diversification Opportunities for Nanjing Canatal and Jiangxi Selon
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanjing and Jiangxi is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Canatal Data and Jiangxi Selon Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Selon Industrial and Nanjing Canatal 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 Nanjing Canatal Data are associated (or correlated) with Jiangxi Selon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Selon Industrial has no effect on the direction of Nanjing Canatal i.e., Nanjing Canatal and Jiangxi Selon go up and down completely randomly.
Pair Corralation between Nanjing Canatal and Jiangxi Selon
Assuming the 90 days trading horizon Nanjing Canatal Data is expected to under-perform the Jiangxi Selon. In addition to that, Nanjing Canatal is 2.3 times more volatile than Jiangxi Selon Industrial. It trades about -0.12 of its total potential returns per unit of risk. Jiangxi Selon Industrial is currently generating about 0.15 per unit of volatility. If you would invest 757.00 in Jiangxi Selon Industrial on October 24, 2024 and sell it today you would earn a total of 50.00 from holding Jiangxi Selon Industrial or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Canatal Data vs. Jiangxi Selon Industrial
Performance |
| Timeline |
| Nanjing Canatal Data |
| Jiangxi Selon Industrial |
Nanjing Canatal and Jiangxi Selon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Canatal and Jiangxi Selon
The main advantage of trading using opposite Nanjing Canatal and Jiangxi Selon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Canatal position performs unexpectedly, Jiangxi Selon 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 Selon will offset losses from the drop in Jiangxi Selon's long position.| Nanjing Canatal vs. PetroChina Co Ltd | Nanjing Canatal vs. Industrial and Commercial | Nanjing Canatal vs. China Petroleum Chemical | Nanjing Canatal vs. China Construction Bank |
| Jiangxi Selon vs. JS Corrugating Machinery | Jiangxi Selon vs. Shandong Sanyuan Biotechnology | Jiangxi Selon vs. Huasi Agricultural Development | Jiangxi Selon vs. Gifore Agricultural Machinery |
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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