Correlation Between Anhui Gujing and Jiangsu Financial
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By analyzing existing cross correlation between Anhui Gujing Distillery and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Anhui Gujing 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 Anhui Gujing with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Jiangsu Financial.
Diversification Opportunities for Anhui Gujing and Jiangsu Financial
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anhui and Jiangsu is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery 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 Anhui Gujing 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 Anhui Gujing Distillery 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 Anhui Gujing i.e., Anhui Gujing and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Anhui Gujing and Jiangsu Financial
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to under-perform the Jiangsu Financial. In addition to that, Anhui Gujing is 1.68 times more volatile than Jiangsu Financial Leasing. It trades about -0.14 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 511.00 in Jiangsu Financial Leasing on October 30, 2024 and sell it today you would earn a total of 17.00 from holding Jiangsu Financial Leasing or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Jiangsu Financial Leasing |
Anhui Gujing and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Jiangsu Financial
The main advantage of trading using opposite Anhui Gujing and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing 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.| Anhui Gujing vs. Guangxi Wuzhou Communications | Anhui Gujing vs. Nanjing Putian Telecommunications | Anhui Gujing vs. Tibet Huayu Mining | Anhui Gujing vs. Zhongshan Public Utilities |
| Jiangsu Financial vs. Spring Airlines Co | Jiangsu Financial vs. Wintao Communications Co | Jiangsu Financial vs. Kuang Chi Technologies | Jiangsu Financial vs. Caihong Display Devices |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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