Correlation Between Shenzhen Zhongzhuang and Jiangsu Financial
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By analyzing existing cross correlation between Shenzhen Zhongzhuang Construction and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhongzhuang and Jiangsu Financial.
Diversification Opportunities for Shenzhen Zhongzhuang and Jiangsu Financial
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Jiangsu is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhongzhuang Construct 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 Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang Construction 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 Shenzhen Zhongzhuang i.e., Shenzhen Zhongzhuang and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Shenzhen Zhongzhuang and Jiangsu Financial
Assuming the 90 days trading horizon Shenzhen Zhongzhuang Construction is expected to under-perform the Jiangsu Financial. In addition to that, Shenzhen Zhongzhuang is 1.93 times more volatile than Jiangsu Financial Leasing. It trades about -0.01 of its total potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.03 per unit of volatility. If you would invest 406.00 in Jiangsu Financial Leasing on October 14, 2024 and sell it today you would earn a total of 92.00 from holding Jiangsu Financial Leasing or generate 22.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Zhongzhuang Construct vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Shenzhen Zhongzhuang |
| Jiangsu Financial Leasing |
Shenzhen Zhongzhuang and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Zhongzhuang and Jiangsu Financial
The main advantage of trading using opposite Shenzhen Zhongzhuang and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhongzhuang 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.| Shenzhen Zhongzhuang vs. Montage Technology Co | Shenzhen Zhongzhuang vs. Linewell Software Co | Shenzhen Zhongzhuang vs. Kuang Chi Technologies | Shenzhen Zhongzhuang vs. Bosera CMSK Industrial |
| Jiangsu Financial vs. Zhejiang Yinlun Machinery | Jiangsu Financial vs. Shenyang Blue Silver | Jiangsu Financial vs. MayAir Technology Co | Jiangsu Financial vs. Shenzhen Zhongzhuang Construction |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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