Correlation Between Jiangsu Jinling and Xiamen Bank
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Xiamen Bank Co, you can compare the effects of market volatilities on Jiangsu Jinling and Xiamen Bank 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 Jiangsu Jinling with a short position of Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Xiamen Bank.
Diversification Opportunities for Jiangsu Jinling and Xiamen Bank
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Xiamen is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank and Jiangsu Jinling 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 Jiangsu Jinling Sports are associated (or correlated) with Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Xiamen Bank go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Xiamen Bank
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to under-perform the Xiamen Bank. In addition to that, Jiangsu Jinling is 2.21 times more volatile than Xiamen Bank Co. It trades about -0.02 of its total potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.03 per unit of volatility. If you would invest 510.00 in Xiamen Bank Co on September 5, 2024 and sell it today you would earn a total of 66.00 from holding Xiamen Bank Co or generate 12.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Xiamen Bank Co
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Xiamen Bank |
Jiangsu Jinling and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Xiamen Bank
The main advantage of trading using opposite Jiangsu Jinling and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank's long position.| Jiangsu Jinling vs. Spring Airlines Co | Jiangsu Jinling vs. Tianjin Capital Environmental | Jiangsu Jinling vs. Ningbo Ligong Online | Jiangsu Jinling vs. Elite Color Environmental |
| Xiamen Bank vs. Jiangsu Jinling Sports | Xiamen Bank vs. Everdisplay Optronics Shanghai | Xiamen Bank vs. Chengdu Spaceon Electronics | Xiamen Bank vs. CICC Fund Management |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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