Correlation Between Shenyang Blue and Jiangsu Financial
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By analyzing existing cross correlation between Shenyang Blue Silver and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Shenyang Blue 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 Shenyang Blue with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and Jiangsu Financial.
Diversification Opportunities for Shenyang Blue and Jiangsu Financial
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenyang and Jiangsu is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver 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 Shenyang Blue 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 Shenyang Blue Silver 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 Shenyang Blue i.e., Shenyang Blue and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Shenyang Blue and Jiangsu Financial
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to generate 2.83 times more return on investment than Jiangsu Financial. However, Shenyang Blue is 2.83 times more volatile than Jiangsu Financial Leasing. It trades about 0.05 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.04 per unit of risk. If you would invest 1,112 in Shenyang Blue Silver on October 28, 2024 and sell it today you would earn a total of 1,112 from holding Shenyang Blue Silver or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Shenyang Blue Silver |
| Jiangsu Financial Leasing |
Shenyang Blue and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and Jiangsu Financial
The main advantage of trading using opposite Shenyang Blue and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue 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.| Shenyang Blue vs. PetroChina Co Ltd | Shenyang Blue vs. Industrial and Commercial | Shenyang Blue vs. China Petroleum Chemical | Shenyang Blue vs. China Construction Bank |
| Jiangsu Financial vs. Ningbo Fujia Industrial | Jiangsu Financial vs. Maxvision Technology Corp | Jiangsu Financial vs. Jinyu Bio Technology Co | Jiangsu Financial vs. Jiujiang Shanshui Technology |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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