Correlation Between Markor International and Jiangsu Financial
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By analyzing existing cross correlation between Markor International Home and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Markor International 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 Markor International with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Markor International and Jiangsu Financial.
Diversification Opportunities for Markor International and Jiangsu Financial
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Markor and Jiangsu is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Markor International Home 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 Markor International 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 Markor International Home 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 Markor International i.e., Markor International and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Markor International and Jiangsu Financial
Assuming the 90 days trading horizon Markor International Home is expected to under-perform the Jiangsu Financial. In addition to that, Markor International is 1.76 times more volatile than Jiangsu Financial Leasing. It trades about -0.01 of its total potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.01 per unit of volatility. If you would invest 507.00 in Jiangsu Financial Leasing on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Jiangsu Financial Leasing or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Markor International Home vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Markor International Home |
| Jiangsu Financial Leasing |
Markor International and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Markor International and Jiangsu Financial
The main advantage of trading using opposite Markor International and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Markor International 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.| Markor International vs. Industrial and Commercial | Markor International vs. Agricultural Bank of | Markor International vs. China Construction Bank | Markor International vs. Bank of China |
| Jiangsu Financial vs. China Petroleum Chemical | Jiangsu Financial vs. PetroChina Co Ltd | Jiangsu Financial vs. China State Construction | Jiangsu Financial vs. China Railway Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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