Correlation Between Hua Xia and Jiangsu Xinning
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By analyzing existing cross correlation between Hua Xia Bank and Jiangsu Xinning Modern, you can compare the effects of market volatilities on Hua Xia and Jiangsu Xinning 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 Hua Xia with a short position of Jiangsu Xinning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hua Xia and Jiangsu Xinning.
Diversification Opportunities for Hua Xia and Jiangsu Xinning
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hua and Jiangsu is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Hua Xia Bank and Jiangsu Xinning Modern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinning Modern and Hua Xia 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 Hua Xia Bank are associated (or correlated) with Jiangsu Xinning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinning Modern has no effect on the direction of Hua Xia i.e., Hua Xia and Jiangsu Xinning go up and down completely randomly.
Pair Corralation between Hua Xia and Jiangsu Xinning
Assuming the 90 days trading horizon Hua Xia Bank is expected to generate 0.32 times more return on investment than Jiangsu Xinning. However, Hua Xia Bank is 3.17 times less risky than Jiangsu Xinning. It trades about -0.3 of its potential returns per unit of risk. Jiangsu Xinning Modern is currently generating about -0.17 per unit of risk. If you would invest 789.00 in Hua Xia Bank on October 25, 2024 and sell it today you would lose (55.00) from holding Hua Xia Bank or give up 6.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hua Xia Bank vs. Jiangsu Xinning Modern
Performance |
| Timeline |
| Hua Xia Bank |
| Jiangsu Xinning Modern |
Hua Xia and Jiangsu Xinning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hua Xia and Jiangsu Xinning
The main advantage of trading using opposite Hua Xia and Jiangsu Xinning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hua Xia position performs unexpectedly, Jiangsu Xinning 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 Xinning will offset losses from the drop in Jiangsu Xinning's long position.| Hua Xia vs. Guangzhou Tinci Materials | Hua Xia vs. Nanjing Putian Telecommunications | Hua Xia vs. Ping An Insurance | Hua Xia vs. Wuhan Yangtze Communication |
| Jiangsu Xinning vs. Anhui Transport Consulting | Jiangsu Xinning vs. Guangdong Jingyi Metal | Jiangsu Xinning vs. Jinhe Biotechnology Co | Jiangsu Xinning vs. Hangzhou Arcvideo 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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