Correlation Between Tonghua Grape and Jiangsu Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tonghua Grape Wine and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Tonghua Grape 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 Tonghua Grape with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tonghua Grape and Jiangsu Financial.
Diversification Opportunities for Tonghua Grape and Jiangsu Financial
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tonghua and Jiangsu is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Tonghua Grape Wine 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 Tonghua Grape 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 Tonghua Grape Wine 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 Tonghua Grape i.e., Tonghua Grape and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Tonghua Grape and Jiangsu Financial
Assuming the 90 days trading horizon Tonghua Grape Wine is expected to under-perform the Jiangsu Financial. In addition to that, Tonghua Grape is 1.75 times more volatile than Jiangsu Financial Leasing. It trades about -0.25 of its total potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.04 per unit of volatility. If you would invest 521.00 in Jiangsu Financial Leasing on October 28, 2024 and sell it today you would earn a total of 6.00 from holding Jiangsu Financial Leasing or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tonghua Grape Wine vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Tonghua Grape Wine |
| Jiangsu Financial Leasing |
Tonghua Grape and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tonghua Grape and Jiangsu Financial
The main advantage of trading using opposite Tonghua Grape and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tonghua Grape 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.| Tonghua Grape vs. Kuang Chi Technologies | Tonghua Grape vs. Huaxia Fund Management | Tonghua Grape vs. Quectel Wireless Solutions | Tonghua Grape vs. Zhongshan Public Utilities |
| Jiangsu Financial vs. Ningbo Fujia Industrial | Jiangsu Financial vs. Maxvision Technology Corp | Jiangsu Financial vs. Jinyu Bio Technology Co | Jiangsu Financial vs. Jiujiang Shanshui 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |