Correlation Between Jiangxi Copper and Ansys

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Can any of the company-specific risk be diversified away by investing in both Jiangxi Copper and Ansys at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jiangxi Copper and Ansys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jiangxi Copper and Ansys Inc, you can compare the effects of market volatilities on Jiangxi Copper and Ansys 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 Copper with a short position of Ansys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Copper and Ansys.

Diversification Opportunities for Jiangxi Copper and Ansys

-0.38
  Correlation Coefficient

Very good diversification

The 3 months correlation between Jiangxi and Ansys is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Copper Ltd and Ansys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ansys Inc and Jiangxi Copper 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 Copper are associated (or correlated) with Ansys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ansys Inc has no effect on the direction of Jiangxi Copper i.e., Jiangxi Copper and Ansys go up and down completely randomly.

Pair Corralation between Jiangxi Copper and Ansys

If you would invest  22,116  in Ansys Inc on September 1, 2022 and sell it today you would earn a total of  3,314  from holding Ansys Inc or generate 14.98% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Jiangxi Copper Ltd  vs.  Ansys Inc

 Performance (%) 
       Timeline  
Jiangxi Copper 
Jiangxi Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Jiangxi Copper are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Jiangxi Copper is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Jiangxi Price Channel

Ansys Inc 
Ansys Performance
0 of 100
Over the last 90 days Ansys Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Ansys is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Ansys Price Channel

Jiangxi Copper and Ansys Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jiangxi Copper and Ansys

The main advantage of trading using opposite Jiangxi Copper and Ansys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Copper position performs unexpectedly, Ansys 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 Ansys will offset losses from the drop in Ansys' long position.
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The idea behind Jiangxi Copper and Ansys Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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