Correlation Between Bohai Leasing and Jiangsu Financial
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By analyzing existing cross correlation between Bohai Leasing Co and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Bohai Leasing 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 Bohai Leasing with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bohai Leasing and Jiangsu Financial.
Diversification Opportunities for Bohai Leasing and Jiangsu Financial
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bohai and Jiangsu is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bohai Leasing Co 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 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 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 Bohai Leasing i.e., Bohai Leasing and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Bohai Leasing and Jiangsu Financial
Assuming the 90 days trading horizon Bohai Leasing Co is expected to under-perform the Jiangsu Financial. In addition to that, Bohai Leasing is 1.46 times more volatile than Jiangsu Financial Leasing. It trades about -0.24 of its total potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.05 per unit of volatility. If you would invest 513.00 in Jiangsu Financial Leasing on October 18, 2024 and sell it today you would earn a total of 6.00 from holding Jiangsu Financial Leasing or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bohai Leasing Co vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Bohai Leasing |
| Jiangsu Financial Leasing |
Bohai Leasing and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bohai Leasing and Jiangsu Financial
The main advantage of trading using opposite Bohai Leasing and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bohai Leasing 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.| Bohai Leasing vs. Shaanxi Meineng Clean | Bohai Leasing vs. Shanghai Yanpu Metal | Bohai Leasing vs. Kangxin New Materials | Bohai Leasing vs. Anhui Transport Consulting |
| Jiangsu Financial vs. Leyard Optoelectronic | Jiangsu Financial vs. Sihui Fuji Electronics | Jiangsu Financial vs. Jinlong Machinery Electronic | Jiangsu Financial vs. HaiXin Foods 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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