Correlation Between XinJiang GuoTong and Jiangsu Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Jiangsu Financial Leasing, you can compare the effects of market volatilities on XinJiang GuoTong 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 XinJiang GuoTong with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Jiangsu Financial.
Diversification Opportunities for XinJiang GuoTong and Jiangsu Financial
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between XinJiang and Jiangsu is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline 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 XinJiang GuoTong 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 XinJiang GuoTong Pipeline 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 XinJiang GuoTong i.e., XinJiang GuoTong and Jiangsu Financial go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Jiangsu Financial
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 1.9 times more return on investment than Jiangsu Financial. However, XinJiang GuoTong is 1.9 times more volatile than Jiangsu Financial Leasing. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.03 per unit of risk. If you would invest 735.00 in XinJiang GuoTong Pipeline on November 7, 2024 and sell it today you would earn a total of 85.00 from holding XinJiang GuoTong Pipeline or generate 11.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jiangsu Financial Leasing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
XinJiang GuoTong and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Jiangsu Financial
The main advantage of trading using opposite XinJiang GuoTong and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong 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.The idea behind XinJiang GuoTong Pipeline and Jiangsu Financial Leasing pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |