Correlation Between Jiangxi JDL and Changjiang Jinggong
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By analyzing existing cross correlation between Jiangxi JDL Environmental and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Jiangxi JDL and Changjiang Jinggong 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 Jiangxi JDL with a short position of Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi JDL and Changjiang Jinggong.
Diversification Opportunities for Jiangxi JDL and Changjiang Jinggong
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Changjiang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi JDL Environmental and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong Steel and Jiangxi JDL 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 Jiangxi JDL Environmental are associated (or correlated) with Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Jiangxi JDL i.e., Jiangxi JDL and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Jiangxi JDL and Changjiang Jinggong
Assuming the 90 days trading horizon Jiangxi JDL Environmental is expected to generate 1.32 times more return on investment than Changjiang Jinggong. However, Jiangxi JDL is 1.32 times more volatile than Changjiang Jinggong Steel. It trades about -0.01 of its potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about -0.01 per unit of risk. If you would invest 1,302 in Jiangxi JDL Environmental on August 25, 2024 and sell it today you would lose (143.00) from holding Jiangxi JDL Environmental or give up 10.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi JDL Environmental vs. Changjiang Jinggong Steel
Performance |
| Timeline |
| Jiangxi JDL Environmental |
| Changjiang Jinggong Steel |
Jiangxi JDL and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi JDL and Changjiang Jinggong
The main advantage of trading using opposite Jiangxi JDL and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi JDL position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's long position.| Jiangxi JDL vs. Guizhou BroadcastingTV Info | Jiangxi JDL vs. Xizi Clean Energy | Jiangxi JDL vs. Longjian Road Bridge | Jiangxi JDL vs. XinJiang GuoTong Pipeline |
| Changjiang Jinggong vs. Yingde Greatchem Chemicals | Changjiang Jinggong vs. Haima Automobile Group | Changjiang Jinggong vs. Zhengzhou Coal Mining | Changjiang Jinggong vs. Hubei Xingfa Chemicals |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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