Correlation Between Shanghai Jinfeng and Jiangsu Financial
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Shanghai Jinfeng 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 Shanghai Jinfeng with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Jiangsu Financial.
Diversification Opportunities for Shanghai Jinfeng and Jiangsu Financial
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and Jiangsu is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng 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 Shanghai Jinfeng 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 Shanghai Jinfeng 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 Shanghai Jinfeng i.e., Shanghai Jinfeng and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Jiangsu Financial
Assuming the 90 days trading horizon Shanghai Jinfeng Wine is expected to under-perform the Jiangsu Financial. In addition to that, Shanghai Jinfeng is 3.12 times more volatile than Jiangsu Financial Leasing. It trades about -0.07 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 511.00 in Jiangsu Financial Leasing on October 30, 2024 and sell it today you would earn a total of 17.00 from holding Jiangsu Financial Leasing or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| Jiangsu Financial Leasing |
Shanghai Jinfeng and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and Jiangsu Financial
The main advantage of trading using opposite Shanghai Jinfeng and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng 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.| Shanghai Jinfeng vs. Chengdu Kanghua Biological | Shanghai Jinfeng vs. Beijing Wantai Biological | Shanghai Jinfeng vs. Suzhou Novoprotein Scientific | Shanghai Jinfeng vs. Aluminum Corp of |
| Jiangsu Financial vs. Spring Airlines Co | Jiangsu Financial vs. Wintao Communications Co | Jiangsu Financial vs. Kuang Chi Technologies | Jiangsu Financial vs. Caihong Display Devices |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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