Correlation Between Guangzhou Seagull and Jiangsu Financial
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Guangzhou Seagull 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 Guangzhou Seagull with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and Jiangsu Financial.
Diversification Opportunities for Guangzhou Seagull and Jiangsu Financial
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangzhou and Jiangsu is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen 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 Guangzhou Seagull 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 Guangzhou Seagull Kitchen 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 Guangzhou Seagull i.e., Guangzhou Seagull and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and Jiangsu Financial
Assuming the 90 days trading horizon Guangzhou Seagull Kitchen is expected to under-perform the Jiangsu Financial. In addition to that, Guangzhou Seagull is 1.69 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 406.00 in Jiangsu Financial Leasing on October 16, 2024 and sell it today you would earn a total of 100.00 from holding Jiangsu Financial Leasing or generate 24.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Seagull Kitchen vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| Jiangsu Financial Leasing |
Guangzhou Seagull and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and Jiangsu Financial
The main advantage of trading using opposite Guangzhou Seagull and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull 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.| Guangzhou Seagull vs. StarPower Semiconductor | Guangzhou Seagull vs. Chenzhou Jingui Silver | Guangzhou Seagull vs. Yuanjie Semiconductor Technology | Guangzhou Seagull vs. Hainan Airlines Co |
| Jiangsu Financial vs. Guangzhou Seagull Kitchen | Jiangsu Financial vs. Anhui Deli Household | Jiangsu Financial vs. Anhui Gujing Distillery | Jiangsu Financial vs. Shanghai Jinfeng Wine |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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