Correlation Between Bohai Leasing and Jiangsu Yueda
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bohai Leasing Co and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Bohai Leasing and Jiangsu Yueda 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 Bohai Leasing with a short position of Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bohai Leasing and Jiangsu Yueda.
Diversification Opportunities for Bohai Leasing and Jiangsu Yueda
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bohai and Jiangsu is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bohai Leasing Co and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment and Bohai Leasing 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 Bohai Leasing Co are associated (or correlated) with Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Bohai Leasing i.e., Bohai Leasing and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Bohai Leasing and Jiangsu Yueda
Assuming the 90 days trading horizon Bohai Leasing Co is expected to generate 1.01 times more return on investment than Jiangsu Yueda. However, Bohai Leasing is 1.01 times more volatile than Jiangsu Yueda Investment. It trades about 0.05 of its potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.01 per unit of risk. If you would invest 232.00 in Bohai Leasing Co on October 28, 2024 and sell it today you would earn a total of 129.00 from holding Bohai Leasing Co or generate 55.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bohai Leasing Co vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Bohai Leasing |
| Jiangsu Yueda Investment |
Bohai Leasing and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bohai Leasing and Jiangsu Yueda
The main advantage of trading using opposite Bohai Leasing and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bohai Leasing position performs unexpectedly, Jiangsu Yueda 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 Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Bohai Leasing vs. Zoje Resources Investment | Bohai Leasing vs. Jointo Energy Investment | Bohai Leasing vs. Guosheng Financial Holding | Bohai Leasing vs. Nuode Investment Co |
| Jiangsu Yueda vs. Industrial and Commercial | Jiangsu Yueda vs. China Construction Bank | Jiangsu Yueda vs. Bank of China | Jiangsu Yueda vs. Agricultural Bank of |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |