Correlation Between Shandong Homey and Jiangsu Financial
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By analyzing existing cross correlation between Shandong Homey Aquatic and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Shandong Homey 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 Shandong Homey with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Homey and Jiangsu Financial.
Diversification Opportunities for Shandong Homey and Jiangsu Financial
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Jiangsu is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Homey Aquatic 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 Shandong Homey 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 Shandong Homey Aquatic 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 Shandong Homey i.e., Shandong Homey and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Shandong Homey and Jiangsu Financial
Assuming the 90 days trading horizon Shandong Homey Aquatic is expected to under-perform the Jiangsu Financial. In addition to that, Shandong Homey is 3.37 times more volatile than Jiangsu Financial Leasing. It trades about -0.21 of its total potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about -0.07 per unit of volatility. If you would invest 518.00 in Jiangsu Financial Leasing on October 11, 2024 and sell it today you would lose (10.00) from holding Jiangsu Financial Leasing or give up 1.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shandong Homey Aquatic vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Shandong Homey Aquatic |
| Jiangsu Financial Leasing |
Shandong Homey and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Homey and Jiangsu Financial
The main advantage of trading using opposite Shandong Homey and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Homey 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.| Shandong Homey vs. Shanghai Rongtai Health | Shandong Homey vs. China Sports Industry | Shandong Homey vs. Mingchen Health Co | Shandong Homey vs. CareRay Digital Medical |
| Jiangsu Financial vs. Oppein Home Group | Jiangsu Financial vs. Central Plains Environment | Jiangsu Financial vs. Tongxing Environmental Protection | Jiangsu Financial vs. Shandong Homey Aquatic |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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