Correlation Between Jiangxi JDL and Industrial
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By analyzing existing cross correlation between Jiangxi JDL Environmental and Industrial and Commercial, you can compare the effects of market volatilities on Jiangxi JDL and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi JDL and Industrial.
Diversification Opportunities for Jiangxi JDL and Industrial
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jiangxi and Industrial is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi JDL Environmental and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Jiangxi JDL i.e., Jiangxi JDL and Industrial go up and down completely randomly.
Pair Corralation between Jiangxi JDL and Industrial
Assuming the 90 days trading horizon Jiangxi JDL Environmental is expected to generate 0.89 times more return on investment than Industrial. However, Jiangxi JDL Environmental is 1.13 times less risky than Industrial. It trades about -0.14 of its potential returns per unit of risk. Industrial and Commercial is currently generating about -0.14 per unit of risk. If you would invest 1,124 in Jiangxi JDL Environmental on October 26, 2024 and sell it today you would lose (41.00) from holding Jiangxi JDL Environmental or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi JDL Environmental vs. Industrial and Commercial
Performance |
| Timeline |
| Jiangxi JDL Environmental |
| Industrial and Commercial |
Jiangxi JDL and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi JDL and Industrial
The main advantage of trading using opposite Jiangxi JDL and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi JDL position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Jiangxi JDL vs. Industrial and Commercial | Jiangxi JDL vs. Agricultural Bank of | Jiangxi JDL vs. China Construction Bank | Jiangxi JDL vs. Bank of China |
| Industrial vs. Sino Platinum Metals Co | Industrial vs. Offshore Oil Engineering | Industrial vs. Heilongjiang Transport Development | Industrial vs. Qingdao Haier Biomedical |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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