Correlation Between Zhejiang Yinlun and Jiangsu Financial
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By analyzing existing cross correlation between Zhejiang Yinlun Machinery and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Zhejiang Yinlun 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 Zhejiang Yinlun with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yinlun and Jiangsu Financial.
Diversification Opportunities for Zhejiang Yinlun and Jiangsu Financial
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Jiangsu is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yinlun 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 Zhejiang Yinlun 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 Zhejiang Yinlun 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 Zhejiang Yinlun i.e., Zhejiang Yinlun and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Zhejiang Yinlun and Jiangsu Financial
Assuming the 90 days trading horizon Zhejiang Yinlun Machinery is expected to generate 1.5 times more return on investment than Jiangsu Financial. However, Zhejiang Yinlun is 1.5 times more volatile than Jiangsu Financial Leasing. It trades about 0.04 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 1,539 in Zhejiang Yinlun Machinery on October 28, 2024 and sell it today you would earn a total of 520.00 from holding Zhejiang Yinlun Machinery or generate 33.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yinlun Machinery vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Zhejiang Yinlun Machinery |
| Jiangsu Financial Leasing |
Zhejiang Yinlun and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yinlun and Jiangsu Financial
The main advantage of trading using opposite Zhejiang Yinlun and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yinlun 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.| Zhejiang Yinlun vs. Shenzhen SDG Information | Zhejiang Yinlun vs. Guangdong Wens Foodstuff | Zhejiang Yinlun vs. SI TECH Information Technology | Zhejiang Yinlun vs. Zhongfu Information |
| Jiangsu Financial vs. Ningbo Fujia Industrial | Jiangsu Financial vs. Maxvision Technology Corp | Jiangsu Financial vs. Jinyu Bio Technology Co | Jiangsu Financial vs. Jiujiang Shanshui Technology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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