Correlation Between Road Environment and Jiangnan Mould
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By analyzing existing cross correlation between Road Environment Technology and Jiangnan Mould Plastic, you can compare the effects of market volatilities on Road Environment and Jiangnan Mould 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 Road Environment with a short position of Jiangnan Mould. Check out your portfolio center. Please also check ongoing floating volatility patterns of Road Environment and Jiangnan Mould.
Diversification Opportunities for Road Environment and Jiangnan Mould
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Road and Jiangnan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Road Environment Technology and Jiangnan Mould Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangnan Mould Plastic and Road Environment 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 Road Environment Technology are associated (or correlated) with Jiangnan Mould. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangnan Mould Plastic has no effect on the direction of Road Environment i.e., Road Environment and Jiangnan Mould go up and down completely randomly.
Pair Corralation between Road Environment and Jiangnan Mould
Assuming the 90 days trading horizon Road Environment is expected to generate 22.03 times less return on investment than Jiangnan Mould. But when comparing it to its historical volatility, Road Environment Technology is 1.18 times less risky than Jiangnan Mould. It trades about 0.01 of its potential returns per unit of risk. Jiangnan Mould Plastic is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 668.00 in Jiangnan Mould Plastic on August 30, 2024 and sell it today you would earn a total of 101.00 from holding Jiangnan Mould Plastic or generate 15.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Road Environment Technology vs. Jiangnan Mould Plastic
Performance |
| Timeline |
| Road Environment Tec |
| Jiangnan Mould Plastic |
Road Environment and Jiangnan Mould Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Road Environment and Jiangnan Mould
The main advantage of trading using opposite Road Environment and Jiangnan Mould positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Road Environment position performs unexpectedly, Jiangnan Mould 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 Jiangnan Mould will offset losses from the drop in Jiangnan Mould's long position.| Road Environment vs. Industrial and Commercial | Road Environment vs. Agricultural Bank of | Road Environment vs. China Construction Bank | Road Environment vs. Bank of China |
| Jiangnan Mould vs. Shuhua Sports Co | Jiangnan Mould vs. GRG Banking Equipment | Jiangnan Mould vs. Industrial Bank Co | Jiangnan Mould vs. Hua Xia Bank |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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