Correlation Between Lander Sports and Jiangsu Financial
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By analyzing existing cross correlation between Lander Sports Development and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Lander Sports 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 Lander Sports with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lander Sports and Jiangsu Financial.
Diversification Opportunities for Lander Sports and Jiangsu Financial
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lander and Jiangsu is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Lander Sports Development 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 Lander Sports 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 Lander Sports Development 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 Lander Sports i.e., Lander Sports and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Lander Sports and Jiangsu Financial
Assuming the 90 days trading horizon Lander Sports Development is expected to generate 2.04 times more return on investment than Jiangsu Financial. However, Lander Sports is 2.04 times more volatile than Jiangsu Financial Leasing. It trades about 0.04 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.03 per unit of risk. If you would invest 257.00 in Lander Sports Development on November 7, 2024 and sell it today you would earn a total of 65.00 from holding Lander Sports Development or generate 25.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lander Sports Development vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Lander Sports Development |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Jiangsu Financial Leasing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lander Sports and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lander Sports and Jiangsu Financial
The main advantage of trading using opposite Lander Sports and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lander Sports 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.The idea behind Lander Sports Development and Jiangsu Financial Leasing pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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