Correlation Between Aofu Environmental and Jiangxi JDL
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By analyzing existing cross correlation between Aofu Environmental Technology and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Aofu Environmental and Jiangxi JDL 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 JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aofu Environmental and Jiangxi JDL.
Diversification Opportunities for Aofu Environmental and Jiangxi JDL
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aofu and Jiangxi is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Aofu Environmental Technology and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental 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 JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of Aofu Environmental i.e., Aofu Environmental and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Aofu Environmental and Jiangxi JDL
Assuming the 90 days trading horizon Aofu Environmental Technology is expected to under-perform the Jiangxi JDL. In addition to that, Aofu Environmental is 1.81 times more volatile than Jiangxi JDL Environmental. It trades about -0.1 of its total potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about -0.1 per unit of volatility. If you would invest 1,163 in Jiangxi JDL Environmental on October 28, 2024 and sell it today you would lose (77.00) from holding Jiangxi JDL Environmental or give up 6.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aofu Environmental Technology vs. Jiangxi JDL Environmental
Performance |
| Timeline |
| Aofu Environmental |
| Jiangxi JDL Environmental |
Aofu Environmental and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aofu Environmental and Jiangxi JDL
The main advantage of trading using opposite Aofu Environmental and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aofu Environmental position performs unexpectedly, Jiangxi JDL 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 JDL will offset losses from the drop in Jiangxi JDL's long position.| Aofu Environmental vs. Citic Guoan Wine | Aofu Environmental vs. Maccura Biotechnology Co | Aofu Environmental vs. Sichuan Hebang Biotechnology | Aofu Environmental vs. Guangdong Marubi Biotechnology |
| Jiangxi JDL vs. Industrial and Commercial | Jiangxi JDL vs. Agricultural Bank of | Jiangxi JDL vs. China Construction Bank | Jiangxi JDL vs. Bank of China |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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