Correlation Between 159005 and Jiangsu Financial
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By analyzing existing cross correlation between 159005 and Jiangsu Financial Leasing, you can compare the effects of market volatilities on 159005 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 159005 with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Jiangsu Financial.
Diversification Opportunities for 159005 and Jiangsu Financial
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 159005 and Jiangsu is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding 159005 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 159005 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 159005 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 159005 i.e., 159005 and Jiangsu Financial go up and down completely randomly.
Pair Corralation between 159005 and Jiangsu Financial
Assuming the 90 days trading horizon 159005 is expected to generate 31.18 times less return on investment than Jiangsu Financial. But when comparing it to its historical volatility, 159005 is 31.86 times less risky than Jiangsu Financial. It trades about 0.21 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 504.00 in Jiangsu Financial Leasing on September 28, 2024 and sell it today you would earn a total of 19.00 from holding Jiangsu Financial Leasing or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| 159005 |
| Jiangsu Financial Leasing |
159005 and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Jiangsu Financial
The main advantage of trading using opposite 159005 and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 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.The idea behind 159005 and Jiangsu Financial Leasing pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Jiangsu Financial vs. China Sports Industry | Jiangsu Financial vs. China Satellite Communications | Jiangsu Financial vs. Caihong Display Devices | Jiangsu Financial vs. Railway Signal Communication |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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