Correlation Between Changchun and Jiangsu Financial
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By analyzing existing cross correlation between Changchun UP Optotech and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Changchun 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 Changchun with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and Jiangsu Financial.
Diversification Opportunities for Changchun and Jiangsu Financial
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changchun and Jiangsu is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech 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 Changchun 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 Changchun UP Optotech 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 Changchun i.e., Changchun and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Changchun and Jiangsu Financial
Assuming the 90 days trading horizon Changchun UP Optotech is expected to under-perform the Jiangsu Financial. In addition to that, Changchun is 3.29 times more volatile than Jiangsu Financial Leasing. It trades about -0.16 of its total potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about -0.05 per unit of volatility. If you would invest 512.00 in Jiangsu Financial Leasing on September 15, 2024 and sell it today you would lose (7.00) from holding Jiangsu Financial Leasing or give up 1.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Changchun UP Optotech |
| Jiangsu Financial Leasing |
Changchun and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and Jiangsu Financial
The main advantage of trading using opposite Changchun and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun 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.| Changchun vs. China Life Insurance | Changchun vs. Cinda Securities Co | Changchun vs. Piotech Inc A | Changchun vs. Dongxing Sec Co |
| Jiangsu Financial vs. Kweichow Moutai Co | Jiangsu Financial vs. Shenzhen Mindray Bio Medical | Jiangsu Financial vs. G bits Network Technology | Jiangsu Financial vs. Shenzhen Transsion Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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