Correlation Between Jiangxi JDL and Tianjin Capital
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangxi JDL Environmental and Tianjin Capital Environmental, you can compare the effects of market volatilities on Jiangxi JDL and Tianjin Capital 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 Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi JDL and Tianjin Capital.
Diversification Opportunities for Jiangxi JDL and Tianjin Capital
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Tianjin is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi JDL Environmental and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi 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 Tianjin Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of Jiangxi JDL i.e., Jiangxi JDL and Tianjin Capital go up and down completely randomly.
Pair Corralation between Jiangxi JDL and Tianjin Capital
Assuming the 90 days trading horizon Jiangxi JDL Environmental is expected to under-perform the Tianjin Capital. In addition to that, Jiangxi JDL is 1.09 times more volatile than Tianjin Capital Environmental. It trades about -0.26 of its total potential returns per unit of risk. Tianjin Capital Environmental is currently generating about -0.24 per unit of volatility. If you would invest 600.00 in Tianjin Capital Environmental on October 21, 2024 and sell it today you would lose (37.00) from holding Tianjin Capital Environmental or give up 6.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi JDL Environmental vs. Tianjin Capital Environmental
Performance |
| Timeline |
| Jiangxi JDL Environmental |
| Tianjin Capital Envi |
Jiangxi JDL and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi JDL and Tianjin Capital
The main advantage of trading using opposite Jiangxi JDL and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi JDL position performs unexpectedly, Tianjin Capital 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 Tianjin Capital will offset losses from the drop in Tianjin Capital's long position.| Jiangxi JDL vs. Shanghai Yaoji Playing | Jiangxi JDL vs. Lander Sports Development | Jiangxi JDL vs. Lianhe Chemical Technology | Jiangxi JDL vs. Caihong Display Devices |
| Tianjin Capital vs. Northern United Publishing | Tianjin Capital vs. Southern PublishingMedia Co | Tianjin Capital vs. Xinhua Winshare Publishing | Tianjin Capital vs. Air China 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |