Correlation Between HeNan Splendor and Jiangsu Financial
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By analyzing existing cross correlation between HeNan Splendor Science and Jiangsu Financial Leasing, you can compare the effects of market volatilities on HeNan Splendor 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 HeNan Splendor with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and Jiangsu Financial.
Diversification Opportunities for HeNan Splendor and Jiangsu Financial
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HeNan and Jiangsu is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science 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 HeNan Splendor 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 HeNan Splendor Science 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 HeNan Splendor i.e., HeNan Splendor and Jiangsu Financial go up and down completely randomly.
Pair Corralation between HeNan Splendor and Jiangsu Financial
Assuming the 90 days trading horizon HeNan Splendor Science is expected to generate 1.74 times more return on investment than Jiangsu Financial. However, HeNan Splendor is 1.74 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 0.05 per unit of risk. If you would invest 903.00 in HeNan Splendor Science on September 4, 2024 and sell it today you would earn a total of 159.00 from holding HeNan Splendor Science or generate 17.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| HeNan Splendor Science |
| Jiangsu Financial Leasing |
HeNan Splendor and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and Jiangsu Financial
The main advantage of trading using opposite HeNan Splendor and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor 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.| HeNan Splendor vs. Industrial and Commercial | HeNan Splendor vs. China Construction Bank | HeNan Splendor vs. Bank of China | HeNan Splendor vs. Agricultural Bank of |
| Jiangsu Financial vs. China Petroleum Chemical | Jiangsu Financial vs. PetroChina Co Ltd | Jiangsu Financial vs. China State Construction | Jiangsu Financial vs. China Railway Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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