Correlation Between DO Home and Jiangsu Financial
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By analyzing existing cross correlation between DO Home Collection and Jiangsu Financial Leasing, you can compare the effects of market volatilities on DO Home 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 DO Home with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of DO Home and Jiangsu Financial.
Diversification Opportunities for DO Home and Jiangsu Financial
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 002798 and Jiangsu is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding DO Home Collection 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 DO Home 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 DO Home Collection 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 DO Home i.e., DO Home and Jiangsu Financial go up and down completely randomly.
Pair Corralation between DO Home and Jiangsu Financial
Assuming the 90 days trading horizon DO Home Collection is expected to under-perform the Jiangsu Financial. In addition to that, DO Home is 1.95 times more volatile than Jiangsu Financial Leasing. It trades about -0.02 of its total potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.01 per unit of volatility. If you would invest 507.00 in Jiangsu Financial Leasing on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Jiangsu Financial Leasing or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
DO Home Collection vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| DO Home Collection |
| Jiangsu Financial Leasing |
DO Home and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DO Home and Jiangsu Financial
The main advantage of trading using opposite DO Home and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DO Home 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.| DO Home vs. Agricultural Bank of | DO Home vs. Industrial and Commercial | DO Home vs. Bank of China | DO Home vs. China Construction Bank |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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