Correlation Between Tieling Newcity and Jiangsu Financial
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By analyzing existing cross correlation between Tieling Newcity Investment and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Tieling Newcity 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 Tieling Newcity with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Jiangsu Financial.
Diversification Opportunities for Tieling Newcity and Jiangsu Financial
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tieling and Jiangsu is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment 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 Tieling Newcity 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 Tieling Newcity Investment 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 Tieling Newcity i.e., Tieling Newcity and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Tieling Newcity and Jiangsu Financial
Assuming the 90 days trading horizon Tieling Newcity is expected to generate 1.31 times less return on investment than Jiangsu Financial. In addition to that, Tieling Newcity is 1.66 times more volatile than Jiangsu Financial Leasing. It trades about 0.02 of its total potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.04 per unit of volatility. If you would invest 409.00 in Jiangsu Financial Leasing on October 11, 2024 and sell it today you would earn a total of 110.00 from holding Jiangsu Financial Leasing or generate 26.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.79% |
Values | Daily Returns |
Tieling Newcity Investment vs. Jiangsu Financial Leasing
Performance |
Timeline |
Tieling Newcity Inve |
Jiangsu Financial Leasing |
Tieling Newcity and Jiangsu Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tieling Newcity and Jiangsu Financial
The main advantage of trading using opposite Tieling Newcity and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity 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.Tieling Newcity vs. Zhonghong Pulin Medical | Tieling Newcity vs. CareRay Digital Medical | Tieling Newcity vs. Shenzhen Glory Medical | Tieling Newcity vs. Zhongrun Resources Investment |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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