Correlation Between Namchow Food and Jiaozuo Wanfang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Namchow Food Group and Jiaozuo Wanfang Aluminum, you can compare the effects of market volatilities on Namchow Food and Jiaozuo Wanfang 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 Namchow Food with a short position of Jiaozuo Wanfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namchow Food and Jiaozuo Wanfang.
Diversification Opportunities for Namchow Food and Jiaozuo Wanfang
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Namchow and Jiaozuo is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Namchow Food Group and Jiaozuo Wanfang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiaozuo Wanfang Aluminum and Namchow Food 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 Namchow Food Group are associated (or correlated) with Jiaozuo Wanfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiaozuo Wanfang Aluminum has no effect on the direction of Namchow Food i.e., Namchow Food and Jiaozuo Wanfang go up and down completely randomly.
Pair Corralation between Namchow Food and Jiaozuo Wanfang
Assuming the 90 days trading horizon Namchow Food Group is expected to generate 1.61 times more return on investment than Jiaozuo Wanfang. However, Namchow Food is 1.61 times more volatile than Jiaozuo Wanfang Aluminum. It trades about 0.2 of its potential returns per unit of risk. Jiaozuo Wanfang Aluminum is currently generating about 0.09 per unit of risk. If you would invest 1,573 in Namchow Food Group on November 7, 2024 and sell it today you would earn a total of 159.00 from holding Namchow Food Group or generate 10.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Namchow Food Group vs. Jiaozuo Wanfang Aluminum
Performance |
| Timeline |
| Namchow Food Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jiaozuo Wanfang Aluminum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Namchow Food and Jiaozuo Wanfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Namchow Food and Jiaozuo Wanfang
The main advantage of trading using opposite Namchow Food and Jiaozuo Wanfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namchow Food position performs unexpectedly, Jiaozuo Wanfang 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 Jiaozuo Wanfang will offset losses from the drop in Jiaozuo Wanfang's long position.The idea behind Namchow Food Group and Jiaozuo Wanfang Aluminum pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |