Correlation Between Yuan Longping and Jiangsu Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yuan Longping High tech and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Yuan Longping 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 Yuan Longping with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuan Longping and Jiangsu Financial.
Diversification Opportunities for Yuan Longping and Jiangsu Financial
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yuan and Jiangsu is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Yuan Longping High tech 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 Yuan Longping 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 Yuan Longping High tech 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 Yuan Longping i.e., Yuan Longping and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Yuan Longping and Jiangsu Financial
Assuming the 90 days trading horizon Yuan Longping High tech is expected to under-perform the Jiangsu Financial. In addition to that, Yuan Longping is 1.26 times more volatile than Jiangsu Financial Leasing. It trades about -0.05 of its total potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about -0.05 per unit of volatility. If you would invest 512.00 in Jiangsu Financial Leasing on September 15, 2024 and sell it today you would lose (7.00) from holding Jiangsu Financial Leasing or give up 1.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuan Longping High tech vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Yuan Longping High |
| Jiangsu Financial Leasing |
Yuan Longping and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuan Longping and Jiangsu Financial
The main advantage of trading using opposite Yuan Longping and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuan Longping 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.| Yuan Longping vs. Eastern Communications Co | Yuan Longping vs. Sichuan Teway Food | Yuan Longping vs. Zhongyin Babi Food | Yuan Longping vs. Namchow Food Group |
| Jiangsu Financial vs. Kweichow Moutai Co | Jiangsu Financial vs. Shenzhen Mindray Bio Medical | Jiangsu Financial vs. G bits Network Technology | Jiangsu Financial vs. Shenzhen Transsion Holdings |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |