Correlation Between Xiandai Investment and Jiangsu Financial
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By analyzing existing cross correlation between Xiandai Investment Co and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Xiandai 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 Xiandai Investment with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Jiangsu Financial.
Diversification Opportunities for Xiandai Investment and Jiangsu Financial
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xiandai and Jiangsu is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co 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 Xiandai 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 Xiandai Investment Co 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 Xiandai Investment i.e., Xiandai Investment and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Xiandai Investment and Jiangsu Financial
Assuming the 90 days trading horizon Xiandai Investment is expected to generate 2.53 times less return on investment than Jiangsu Financial. But when comparing it to its historical volatility, Xiandai Investment Co is 1.09 times less risky than Jiangsu Financial. It trades about 0.02 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.04 of returns per unit of risk over similar time horizon. 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 | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Xiandai Investment |
| Jiangsu Financial Leasing |
Xiandai Investment and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Jiangsu Financial
The main advantage of trading using opposite Xiandai Investment and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai 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.| Xiandai Investment vs. JCHX Mining Management | Xiandai Investment vs. Maccura Biotechnology Co | Xiandai Investment vs. Guocheng Mining Co | Xiandai Investment vs. Uroica Mining Safety |
| Jiangsu Financial vs. Tibet Huayu Mining | Jiangsu Financial vs. China Minmetals Rare | Jiangsu Financial vs. Financial Street Holdings | Jiangsu Financial vs. Ping An Insurance |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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