Correlation Between Henan Lantian and Jiangxi Copper
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By analyzing existing cross correlation between Henan Lantian Gas and Jiangxi Copper Co, you can compare the effects of market volatilities on Henan Lantian and Jiangxi Copper 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 Henan Lantian with a short position of Jiangxi Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Lantian and Jiangxi Copper.
Diversification Opportunities for Henan Lantian and Jiangxi Copper
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Henan and Jiangxi is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Henan Lantian Gas and Jiangxi Copper Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Copper and Henan Lantian 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 Henan Lantian Gas are associated (or correlated) with Jiangxi Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Copper has no effect on the direction of Henan Lantian i.e., Henan Lantian and Jiangxi Copper go up and down completely randomly.
Pair Corralation between Henan Lantian and Jiangxi Copper
Assuming the 90 days trading horizon Henan Lantian Gas is expected to generate 0.86 times more return on investment than Jiangxi Copper. However, Henan Lantian Gas is 1.16 times less risky than Jiangxi Copper. It trades about 0.05 of its potential returns per unit of risk. Jiangxi Copper Co is currently generating about -0.13 per unit of risk. If you would invest 1,118 in Henan Lantian Gas on August 31, 2024 and sell it today you would earn a total of 16.00 from holding Henan Lantian Gas or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Henan Lantian Gas vs. Jiangxi Copper Co
Performance |
| Timeline |
| Henan Lantian Gas |
| Jiangxi Copper |
Henan Lantian and Jiangxi Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Lantian and Jiangxi Copper
The main advantage of trading using opposite Henan Lantian and Jiangxi Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Lantian position performs unexpectedly, Jiangxi Copper 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 Copper will offset losses from the drop in Jiangxi Copper's long position.| Henan Lantian vs. JiShi Media Co | Henan Lantian vs. Jiangsu Jinling Sports | Henan Lantian vs. Mango Excellent Media | Henan Lantian vs. Sportsoul Co Ltd |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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