Correlation Between Aofu Environmental and Jiangxi Selon
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By analyzing existing cross correlation between Aofu Environmental Technology and Jiangxi Selon Industrial, you can compare the effects of market volatilities on Aofu Environmental 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 Aofu Environmental with a short position of Jiangxi Selon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aofu Environmental and Jiangxi Selon.
Diversification Opportunities for Aofu Environmental and Jiangxi Selon
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aofu and Jiangxi is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Aofu Environmental Technology 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 Aofu Environmental 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 Aofu Environmental Technology 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 Aofu Environmental i.e., Aofu Environmental and Jiangxi Selon go up and down completely randomly.
Pair Corralation between Aofu Environmental and Jiangxi Selon
Assuming the 90 days trading horizon Aofu Environmental Technology is expected to under-perform the Jiangxi Selon. In addition to that, Aofu Environmental is 1.01 times more volatile than Jiangxi Selon Industrial. It trades about -0.03 of its total potential returns per unit of risk. Jiangxi Selon Industrial is currently generating about -0.02 per unit of volatility. If you would invest 1,156 in Jiangxi Selon Industrial on September 4, 2024 and sell it today you would lose (449.00) from holding Jiangxi Selon Industrial or give up 38.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aofu Environmental Technology vs. Jiangxi Selon Industrial
Performance |
| Timeline |
| Aofu Environmental |
| Jiangxi Selon Industrial |
Aofu Environmental and Jiangxi Selon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aofu Environmental and Jiangxi Selon
The main advantage of trading using opposite Aofu Environmental and Jiangxi Selon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aofu Environmental 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.| Aofu Environmental vs. Shanghai Metersbonwe FashionAccessories | Aofu Environmental vs. Yingde Greatchem Chemicals | Aofu Environmental vs. Dymatic Chemicals | Aofu Environmental vs. China Publishing Media |
| Jiangxi Selon vs. Zijin Mining Group | Jiangxi Selon vs. Wanhua Chemical Group | Jiangxi Selon vs. Baoshan Iron Steel | Jiangxi Selon vs. Rongsheng Petrochemical 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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