Correlation Between Nanjing Medlander and Jizhong Energy
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By analyzing existing cross correlation between Nanjing Medlander Medical and Jizhong Energy Resources, you can compare the effects of market volatilities on Nanjing Medlander and Jizhong Energy 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 Nanjing Medlander with a short position of Jizhong Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Medlander and Jizhong Energy.
Diversification Opportunities for Nanjing Medlander and Jizhong Energy
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Jizhong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Medlander Medical and Jizhong Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jizhong Energy Resources and Nanjing Medlander 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 Nanjing Medlander Medical are associated (or correlated) with Jizhong Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jizhong Energy Resources has no effect on the direction of Nanjing Medlander i.e., Nanjing Medlander and Jizhong Energy go up and down completely randomly.
Pair Corralation between Nanjing Medlander and Jizhong Energy
Assuming the 90 days trading horizon Nanjing Medlander Medical is expected to under-perform the Jizhong Energy. In addition to that, Nanjing Medlander is 1.15 times more volatile than Jizhong Energy Resources. It trades about -0.04 of its total potential returns per unit of risk. Jizhong Energy Resources is currently generating about 0.25 per unit of volatility. If you would invest 615.00 in Jizhong Energy Resources on September 13, 2024 and sell it today you would earn a total of 63.00 from holding Jizhong Energy Resources or generate 10.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Medlander Medical vs. Jizhong Energy Resources
Performance |
| Timeline |
| Nanjing Medlander Medical |
| Jizhong Energy Resources |
Nanjing Medlander and Jizhong Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Medlander and Jizhong Energy
The main advantage of trading using opposite Nanjing Medlander and Jizhong Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Medlander position performs unexpectedly, Jizhong Energy 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 Jizhong Energy will offset losses from the drop in Jizhong Energy's long position.| Nanjing Medlander vs. Industrial and Commercial | Nanjing Medlander vs. Kweichow Moutai Co | Nanjing Medlander vs. Agricultural Bank of | Nanjing Medlander vs. China Mobile Limited |
| Jizhong Energy vs. Nanxing Furniture Machinery | Jizhong Energy vs. Shuhua Sports Co | Jizhong Energy vs. Hunan Mendale Hometextile | Jizhong Energy vs. Southern PublishingMedia Co |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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