Correlation Between China Southern and Jiangsu Jinling
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By analyzing existing cross correlation between China Southern Airlines and Jiangsu Jinling Sports, you can compare the effects of market volatilities on China Southern and Jiangsu Jinling 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 China Southern with a short position of Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Southern and Jiangsu Jinling.
Diversification Opportunities for China Southern and Jiangsu Jinling
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Jiangsu is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding China Southern Airlines and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports and China Southern 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 China Southern Airlines are associated (or correlated) with Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of China Southern i.e., China Southern and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between China Southern and Jiangsu Jinling
Assuming the 90 days trading horizon China Southern Airlines is expected to generate 0.57 times more return on investment than Jiangsu Jinling. However, China Southern Airlines is 1.76 times less risky than Jiangsu Jinling. It trades about -0.01 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about -0.02 per unit of risk. If you would invest 785.00 in China Southern Airlines on September 4, 2024 and sell it today you would lose (121.00) from holding China Southern Airlines or give up 15.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Southern Airlines vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| China Southern Airlines |
| Jiangsu Jinling Sports |
China Southern and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Southern and Jiangsu Jinling
The main advantage of trading using opposite China Southern and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Southern position performs unexpectedly, Jiangsu Jinling 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 Jinling will offset losses from the drop in Jiangsu Jinling's long position.| China Southern vs. Xiangyang Automobile Bearing | China Southern vs. Guangdong Marubi Biotechnology | China Southern vs. Jinhe Biotechnology Co | China Southern vs. Dongfeng Automobile Co |
| Jiangsu Jinling vs. BeiGene | Jiangsu Jinling vs. Kweichow Moutai Co | Jiangsu Jinling vs. Beijing Roborock Technology | Jiangsu Jinling vs. G bits Network 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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