Correlation Between GuoChuang Software and Jiangsu Financial
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By analyzing existing cross correlation between GuoChuang Software Co and Jiangsu Financial Leasing, you can compare the effects of market volatilities on GuoChuang Software 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 GuoChuang Software with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of GuoChuang Software and Jiangsu Financial.
Diversification Opportunities for GuoChuang Software and Jiangsu Financial
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GuoChuang and Jiangsu is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding GuoChuang Software Co 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 GuoChuang Software 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 GuoChuang Software Co 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 GuoChuang Software i.e., GuoChuang Software and Jiangsu Financial go up and down completely randomly.
Pair Corralation between GuoChuang Software and Jiangsu Financial
Assuming the 90 days trading horizon GuoChuang Software Co is expected to generate 2.54 times more return on investment than Jiangsu Financial. However, GuoChuang Software is 2.54 times more volatile than Jiangsu Financial Leasing. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.06 per unit of risk. If you would invest 2,549 in GuoChuang Software Co on August 31, 2024 and sell it today you would earn a total of 22.00 from holding GuoChuang Software Co or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GuoChuang Software Co vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| GuoChuang Software |
| Jiangsu Financial Leasing |
GuoChuang Software and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GuoChuang Software and Jiangsu Financial
The main advantage of trading using opposite GuoChuang Software and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GuoChuang Software 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.| GuoChuang Software vs. Kweichow Moutai Co | GuoChuang Software vs. NAURA Technology Group | GuoChuang Software vs. APT Medical | GuoChuang Software vs. Contemporary Amperex Technology |
| Jiangsu Financial vs. Agricultural Bank of | Jiangsu Financial vs. Hangzhou Pinming Software | Jiangsu Financial vs. Shandong Mining Machinery | Jiangsu Financial vs. GuoChuang Software Co |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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