Correlation Between ButOne Information and Jiangsu Financial
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By analyzing existing cross correlation between ButOne Information Corp and Jiangsu Financial Leasing, you can compare the effects of market volatilities on ButOne Information 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 ButOne Information with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of ButOne Information and Jiangsu Financial.
Diversification Opportunities for ButOne Information and Jiangsu Financial
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between ButOne and Jiangsu is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding ButOne Information Corp 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 ButOne Information 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 ButOne Information Corp 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 ButOne Information i.e., ButOne Information and Jiangsu Financial go up and down completely randomly.
Pair Corralation between ButOne Information and Jiangsu Financial
Assuming the 90 days trading horizon ButOne Information Corp is expected to generate 1.91 times more return on investment than Jiangsu Financial. However, ButOne Information is 1.91 times more volatile than Jiangsu Financial Leasing. It trades about 0.08 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.11 per unit of risk. If you would invest 2,051 in ButOne Information Corp on November 3, 2024 and sell it today you would earn a total of 70.00 from holding ButOne Information Corp or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ButOne Information Corp vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| ButOne Information Corp |
| Jiangsu Financial Leasing |
ButOne Information and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ButOne Information and Jiangsu Financial
The main advantage of trading using opposite ButOne Information and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ButOne Information 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.| ButOne Information vs. Jilin Jlu Communication | ButOne Information vs. China Publishing Media | ButOne Information vs. Guangdong Jinma Entertainment | ButOne Information vs. Ciwen Media Co |
| Jiangsu Financial vs. Industrial and Commercial | Jiangsu Financial vs. Agricultural Bank of | Jiangsu Financial vs. China Construction Bank | Jiangsu Financial vs. Bank of China |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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