Correlation Between Guangzhou Dongfang and Jiangsu Financial
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By analyzing existing cross correlation between Guangzhou Dongfang Hotel and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Guangzhou Dongfang 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 Guangzhou Dongfang with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Dongfang and Jiangsu Financial.
Diversification Opportunities for Guangzhou Dongfang and Jiangsu Financial
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guangzhou and Jiangsu is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Dongfang Hotel 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 Guangzhou Dongfang 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 Guangzhou Dongfang Hotel 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 Guangzhou Dongfang i.e., Guangzhou Dongfang and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Guangzhou Dongfang and Jiangsu Financial
Assuming the 90 days trading horizon Guangzhou Dongfang Hotel is expected to generate 1.21 times more return on investment than Jiangsu Financial. However, Guangzhou Dongfang is 1.21 times more volatile than Jiangsu Financial Leasing. It trades about 0.16 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.08 per unit of risk. If you would invest 902.00 in Guangzhou Dongfang Hotel on November 7, 2024 and sell it today you would earn a total of 43.00 from holding Guangzhou Dongfang Hotel or generate 4.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Dongfang Hotel vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Guangzhou Dongfang Hotel |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jiangsu Financial Leasing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Guangzhou Dongfang and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Dongfang and Jiangsu Financial
The main advantage of trading using opposite Guangzhou Dongfang and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Dongfang 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.| Guangzhou Dongfang vs. Zhejiang Zanyu Technology | Guangzhou Dongfang vs. Shanghai SK Automation | Guangzhou Dongfang vs. ShenZhen YUTO Packaging | Guangzhou Dongfang vs. Lao Feng Xiang |
| Jiangsu Financial vs. Zhejiang Zanyu Technology | Jiangsu Financial vs. Shanghai SK Automation | Jiangsu Financial vs. ShenZhen YUTO Packaging | Jiangsu Financial vs. Lao Feng Xiang |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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