Correlation Between Der International and Jiangsu Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Der International Home and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Der International 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 Der International with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Der International and Jiangsu Financial.
Diversification Opportunities for Der International and Jiangsu Financial
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Der and Jiangsu is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Der International Home 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 Der International 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 Der International Home 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 Der International i.e., Der International and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Der International and Jiangsu Financial
Assuming the 90 days trading horizon Der International Home is expected to generate 1.73 times more return on investment than Jiangsu Financial. However, Der International is 1.73 times more volatile than Jiangsu Financial Leasing. It trades about 0.2 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 456.00 in Der International Home on September 3, 2024 and sell it today you would earn a total of 56.00 from holding Der International Home or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Der International Home vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Der International Home |
| Jiangsu Financial Leasing |
Der International and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Der International and Jiangsu Financial
The main advantage of trading using opposite Der International and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Der International 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.| Der International vs. Marssenger Kitchenware Co | Der International vs. Shenzhen Noposion Agrochemicals | Der International vs. Chahua Modern Housewares | Der International vs. HUAQIN TECHNOLOGY LTD |
| Jiangsu Financial vs. Jinling Hotel Corp | Jiangsu Financial vs. Air China Ltd | Jiangsu Financial vs. Fujian Oriental Silver | Jiangsu Financial vs. Chenzhou Jingui Silver |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |