Correlation Between Weichai Heavy and Jiangsu Financial
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By analyzing existing cross correlation between Weichai Heavy Machinery and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Weichai Heavy 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 Weichai Heavy with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weichai Heavy and Jiangsu Financial.
Diversification Opportunities for Weichai Heavy and Jiangsu Financial
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Weichai and Jiangsu is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Weichai Heavy Machinery 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 Weichai Heavy 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 Weichai Heavy Machinery 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 Weichai Heavy i.e., Weichai Heavy and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Weichai Heavy and Jiangsu Financial
Assuming the 90 days trading horizon Weichai Heavy Machinery is expected to generate 1.87 times more return on investment than Jiangsu Financial. However, Weichai Heavy is 1.87 times more volatile than Jiangsu Financial Leasing. It trades about 0.07 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.04 per unit of risk. If you would invest 973.00 in Weichai Heavy Machinery on October 26, 2024 and sell it today you would earn a total of 1,173 from holding Weichai Heavy Machinery or generate 120.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Weichai Heavy Machinery vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Weichai Heavy Machinery |
| Jiangsu Financial Leasing |
Weichai Heavy and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weichai Heavy and Jiangsu Financial
The main advantage of trading using opposite Weichai Heavy and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weichai Heavy 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.| Weichai Heavy vs. Ming Yang Smart | Weichai Heavy vs. 159681 | Weichai Heavy vs. 159005 | Weichai Heavy vs. Loctek Ergonomic Technology |
| Jiangsu Financial vs. Xinjiang Baodi Mining | Jiangsu Financial vs. Tonghua Grape Wine | Jiangsu Financial vs. Beingmate Baby Child | Jiangsu Financial vs. ZYF Lopsking Aluminum |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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