Correlation Between China Express and Jiangsu Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Express Airlines and Jiangsu Financial Leasing, you can compare the effects of market volatilities on China Express 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 China Express with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Express and Jiangsu Financial.
Diversification Opportunities for China Express and Jiangsu Financial
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Jiangsu is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding China Express Airlines 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 China Express 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 China Express Airlines 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 China Express i.e., China Express and Jiangsu Financial go up and down completely randomly.
Pair Corralation between China Express and Jiangsu Financial
Assuming the 90 days trading horizon China Express Airlines is expected to generate 1.25 times more return on investment than Jiangsu Financial. However, China Express is 1.25 times more volatile than Jiangsu Financial Leasing. It trades about 0.22 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.1 per unit of risk. If you would invest 565.00 in China Express Airlines on September 4, 2024 and sell it today you would earn a total of 255.00 from holding China Express Airlines or generate 45.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Express Airlines vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| China Express Airlines |
| Jiangsu Financial Leasing |
China Express and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Express and Jiangsu Financial
The main advantage of trading using opposite China Express and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Express 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.| China Express vs. DO Home Collection | China Express vs. TongFu Microelectronics Co | China Express vs. Shandong Homey Aquatic | China Express vs. Zoy Home Furnishing |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |