Correlation Between Financial Street and Jiangsu Financial
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By analyzing existing cross correlation between Financial Street Holdings and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Financial Street and Jiangsu Financial 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 Financial Street with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial Street and Jiangsu Financial.
Diversification Opportunities for Financial Street and Jiangsu Financial
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Financial and Jiangsu is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Financial Street Holdings and Jiangsu Financial Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Financial Leasing and Financial Street 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 Financial Street Holdings are associated (or correlated) with Jiangsu Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Financial Leasing has no effect on the direction of Financial Street i.e., Financial Street and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Financial Street and Jiangsu Financial
Assuming the 90 days trading horizon Financial Street Holdings is expected to under-perform the Jiangsu Financial. In addition to that, Financial Street is 2.03 times more volatile than Jiangsu Financial Leasing. It trades about -0.14 of its total potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.12 per unit of volatility. If you would invest 496.00 in Jiangsu Financial Leasing on October 26, 2024 and sell it today you would earn a total of 30.00 from holding Jiangsu Financial Leasing or generate 6.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Financial Street Holdings vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Financial Street Holdings |
| Jiangsu Financial Leasing |
Financial Street and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financial Street and Jiangsu Financial
The main advantage of trading using opposite Financial Street and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financial Street position performs unexpectedly, Jiangsu Financial 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 Jiangsu Financial will offset losses from the drop in Jiangsu Financial's long position.| Financial Street vs. Agricultural Bank of | Financial Street vs. Industrial and Commercial | Financial Street vs. Bank of China | Financial Street vs. China Construction Bank |
| Jiangsu Financial vs. Cloud Live Technology | Jiangsu Financial vs. Nanjing Putian Telecommunications | Jiangsu Financial vs. Shenzhen Coship Electronics | Jiangsu Financial vs. Shenzhen Hifuture Electric |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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