Correlation Between Zhejiang Yongjin and Jiangxi Naipu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Yongjin Metal and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Zhejiang Yongjin and Jiangxi Naipu 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 Zhejiang Yongjin with a short position of Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and Jiangxi Naipu.
Diversification Opportunities for Zhejiang Yongjin and Jiangxi Naipu
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Jiangxi is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and Jiangxi Naipu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Naipu Mining and Zhejiang Yongjin 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 Zhejiang Yongjin Metal are associated (or correlated) with Jiangxi Naipu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Naipu Mining has no effect on the direction of Zhejiang Yongjin i.e., Zhejiang Yongjin and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and Jiangxi Naipu
Assuming the 90 days trading horizon Zhejiang Yongjin Metal is expected to generate 1.04 times more return on investment than Jiangxi Naipu. However, Zhejiang Yongjin is 1.04 times more volatile than Jiangxi Naipu Mining. It trades about 0.14 of its potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about -0.15 per unit of risk. If you would invest 1,883 in Zhejiang Yongjin Metal on October 29, 2024 and sell it today you would earn a total of 90.00 from holding Zhejiang Yongjin Metal or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yongjin Metal vs. Jiangxi Naipu Mining
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| Jiangxi Naipu Mining |
Zhejiang Yongjin and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and Jiangxi Naipu
The main advantage of trading using opposite Zhejiang Yongjin and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin position performs unexpectedly, Jiangxi Naipu 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 Naipu will offset losses from the drop in Jiangxi Naipu's long position.| Zhejiang Yongjin vs. Shanghai Yanpu Metal | Zhejiang Yongjin vs. Hainan Airlines Co | Zhejiang Yongjin vs. Sino Platinum Metals Co | Zhejiang Yongjin vs. Western Metal Materials |
| Jiangxi Naipu vs. Chinese Universe Publishing | Jiangxi Naipu vs. Offcn Education Technology | Jiangxi Naipu vs. Zhejiang Publishing Media | Jiangxi Naipu vs. Silkroad Visual Technology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |