Correlation Between Shenzhen Hifuture and Jiangsu Financial
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Shenzhen Hifuture 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 Shenzhen Hifuture with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Jiangsu Financial.
Diversification Opportunities for Shenzhen Hifuture and Jiangsu Financial
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Jiangsu is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric 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 Shenzhen Hifuture 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 Shenzhen Hifuture Electric 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 Shenzhen Hifuture i.e., Shenzhen Hifuture and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Jiangsu Financial
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Jiangsu Financial. In addition to that, Shenzhen Hifuture is 1.77 times more volatile than Jiangsu Financial Leasing. It trades about -0.25 of its total potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.08 per unit of volatility. If you would invest 518.00 in Jiangsu Financial Leasing on November 5, 2024 and sell it today you would earn a total of 10.00 from holding Jiangsu Financial Leasing or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Shenzhen Hifuture |
| Jiangsu Financial Leasing |
Shenzhen Hifuture and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Jiangsu Financial
The main advantage of trading using opposite Shenzhen Hifuture and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture 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.| Shenzhen Hifuture vs. Jiangsu Yueda Investment | Shenzhen Hifuture vs. China Asset Management | Shenzhen Hifuture vs. Fibocom Wireless | Shenzhen Hifuture vs. Beijing Kingsoft Office |
| Jiangsu Financial vs. Xiandai Investment Co | Jiangsu Financial vs. Shanghai Jinfeng Wine | Jiangsu Financial vs. CICC Fund Management | Jiangsu Financial vs. Jiangsu Yueda Investment |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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