Correlation Between Aofu Environmental and Xiamen Jihong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aofu Environmental Technology and Xiamen Jihong Package, you can compare the effects of market volatilities on Aofu Environmental and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aofu Environmental and Xiamen Jihong.
Diversification Opportunities for Aofu Environmental and Xiamen Jihong
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aofu and Xiamen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Aofu Environmental Technology and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Aofu Environmental i.e., Aofu Environmental and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Aofu Environmental and Xiamen Jihong
Assuming the 90 days trading horizon Aofu Environmental is expected to generate 1.26 times less return on investment than Xiamen Jihong. But when comparing it to its historical volatility, Aofu Environmental Technology is 1.19 times less risky than Xiamen Jihong. It trades about 0.12 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,459 in Xiamen Jihong Package on September 7, 2024 and sell it today you would earn a total of 128.00 from holding Xiamen Jihong Package or generate 8.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aofu Environmental Technology vs. Xiamen Jihong Package
Performance |
| Timeline |
| Aofu Environmental |
| Xiamen Jihong Package |
Aofu Environmental and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aofu Environmental and Xiamen Jihong
The main advantage of trading using opposite Aofu Environmental and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aofu Environmental position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Aofu Environmental vs. Zijin Mining Group | Aofu Environmental vs. Wanhua Chemical Group | Aofu Environmental vs. Baoshan Iron Steel | Aofu Environmental vs. Rongsheng Petrochemical Co |
| Xiamen Jihong vs. Zijin Mining Group | Xiamen Jihong vs. Wanhua Chemical Group | Xiamen Jihong vs. Baoshan Iron Steel | Xiamen Jihong 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |