Correlation Between Jiangsu Financial and Shenwu Energy
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Shenwu Energy Saving, you can compare the effects of market volatilities on Jiangsu Financial and Shenwu Energy 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 Jiangsu Financial with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Shenwu Energy.
Diversification Opportunities for Jiangsu Financial and Shenwu Energy
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiangsu and Shenwu is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Shenwu Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenwu Energy Saving and Jiangsu Financial 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 Jiangsu Financial Leasing are associated (or correlated) with Shenwu Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenwu Energy Saving has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Shenwu Energy go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Shenwu Energy
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.2 times more return on investment than Shenwu Energy. However, Jiangsu Financial Leasing is 4.98 times less risky than Shenwu Energy. It trades about 0.11 of its potential returns per unit of risk. Shenwu Energy Saving is currently generating about -0.04 per unit of risk. If you would invest 514.00 in Jiangsu Financial Leasing on November 3, 2024 and sell it today you would earn a total of 14.00 from holding Jiangsu Financial Leasing or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Shenwu Energy Saving
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Shenwu Energy Saving |
Jiangsu Financial and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Shenwu Energy
The main advantage of trading using opposite Jiangsu Financial and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Shenwu Energy 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 Shenwu Energy will offset losses from the drop in Shenwu Energy's long position.| Jiangsu Financial vs. Industrial and Commercial | Jiangsu Financial vs. Agricultural Bank of | Jiangsu Financial vs. China Construction Bank | Jiangsu Financial vs. Bank of China |
| Shenwu Energy vs. Hubei Xingfa Chemicals | Shenwu Energy vs. Ningbo Fangzheng Automobile | Shenwu Energy vs. Shandong Polymer Biochemicals | Shenwu Energy vs. Sinomach Automobile Co |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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