Correlation Between Saurer Intelligent and Jiangsu Financial
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By analyzing existing cross correlation between Saurer Intelligent Technology and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Saurer Intelligent 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 Saurer Intelligent with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saurer Intelligent and Jiangsu Financial.
Diversification Opportunities for Saurer Intelligent and Jiangsu Financial
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saurer and Jiangsu is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Saurer Intelligent Technology 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 Saurer Intelligent 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 Saurer Intelligent Technology 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 Saurer Intelligent i.e., Saurer Intelligent and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Saurer Intelligent and Jiangsu Financial
Assuming the 90 days trading horizon Saurer Intelligent Technology is expected to generate 4.6 times more return on investment than Jiangsu Financial. However, Saurer Intelligent is 4.6 times more volatile than Jiangsu Financial Leasing. It trades about 0.39 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about -0.08 per unit of risk. If you would invest 219.00 in Saurer Intelligent Technology on September 12, 2024 and sell it today you would earn a total of 112.00 from holding Saurer Intelligent Technology or generate 51.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saurer Intelligent Technology vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Saurer Intelligent |
| Jiangsu Financial Leasing |
Saurer Intelligent and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saurer Intelligent and Jiangsu Financial
The main advantage of trading using opposite Saurer Intelligent and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saurer Intelligent 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.| Saurer Intelligent vs. Agricultural Bank of | Saurer Intelligent vs. Industrial and Commercial | Saurer Intelligent vs. Bank of China | Saurer Intelligent vs. PetroChina Co Ltd |
| Jiangsu Financial vs. China Petroleum Chemical | Jiangsu Financial vs. PetroChina Co Ltd | Jiangsu Financial vs. China Mobile Limited | Jiangsu Financial vs. Industrial and Commercial |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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