Correlation Between Hunan Investment and Jiangsu Financial
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By analyzing existing cross correlation between Hunan Investment Group and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Hunan Investment 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 Hunan Investment with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Jiangsu Financial.
Diversification Opportunities for Hunan Investment and Jiangsu Financial
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hunan and Jiangsu is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group 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 Hunan Investment 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 Hunan Investment Group 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 Hunan Investment i.e., Hunan Investment and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Hunan Investment and Jiangsu Financial
Assuming the 90 days trading horizon Hunan Investment Group is expected to under-perform the Jiangsu Financial. In addition to that, Hunan Investment is 1.74 times more volatile than Jiangsu Financial Leasing. It trades about -0.45 of its total potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about -0.07 per unit of volatility. If you would invest 508.00 in Jiangsu Financial Leasing on October 16, 2024 and sell it today you would lose (10.00) from holding Jiangsu Financial Leasing or give up 1.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hunan Investment Group vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Hunan Investment |
| Jiangsu Financial Leasing |
Hunan Investment and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Jiangsu Financial
The main advantage of trading using opposite Hunan Investment and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment 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.| Hunan Investment vs. Liaoning Dingjide Petrochemical | Hunan Investment vs. Dosilicon Co | Hunan Investment vs. Postal Savings Bank | Hunan Investment vs. China Asset Management |
| Jiangsu Financial vs. Guangzhou Seagull Kitchen | Jiangsu Financial vs. Anhui Deli Household | Jiangsu Financial vs. Anhui Gujing Distillery | Jiangsu Financial vs. Shanghai Jinfeng Wine |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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