Correlation Between Zhongjing Food and Jiangsu Financial
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By analyzing existing cross correlation between Zhongjing Food Co and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Zhongjing Food 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 Zhongjing Food with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongjing Food and Jiangsu Financial.
Diversification Opportunities for Zhongjing Food and Jiangsu Financial
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhongjing and Jiangsu is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Zhongjing Food 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 Zhongjing Food 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 Zhongjing Food 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 Zhongjing Food i.e., Zhongjing Food and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Zhongjing Food and Jiangsu Financial
Assuming the 90 days trading horizon Zhongjing Food Co is expected to generate 2.12 times more return on investment than Jiangsu Financial. However, Zhongjing Food is 2.12 times more volatile than Jiangsu Financial Leasing. It trades about 0.02 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about -0.02 per unit of risk. If you would invest 2,986 in Zhongjing Food Co on October 25, 2024 and sell it today you would earn a total of 16.00 from holding Zhongjing Food Co or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongjing Food Co vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Zhongjing Food |
| Jiangsu Financial Leasing |
Zhongjing Food and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongjing Food and Jiangsu Financial
The main advantage of trading using opposite Zhongjing Food and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongjing Food 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.| Zhongjing Food vs. Agricultural Bank of | Zhongjing Food vs. Postal Savings Bank | Zhongjing Food vs. Bank of Communications | Zhongjing Food vs. China Merchants Bank |
| Jiangsu Financial vs. Jiangsu Jinling Sports | Jiangsu Financial vs. Kidswant Children Products | Jiangsu Financial vs. Shenzhen Zqgame | Jiangsu Financial vs. Xinjiang Baodi Mining |
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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