Correlation Between Jiangsu Financial and FSPG Hi
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By analyzing existing cross correlation between Jiangsu Financial Leasing and FSPG Hi Tech Co, you can compare the effects of market volatilities on Jiangsu Financial and FSPG Hi 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 FSPG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and FSPG Hi.
Diversification Opportunities for Jiangsu Financial and FSPG Hi
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and FSPG is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and FSPG Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSPG Hi Tech 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 FSPG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSPG Hi Tech has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and FSPG Hi go up and down completely randomly.
Pair Corralation between Jiangsu Financial and FSPG Hi
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to under-perform the FSPG Hi. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Financial Leasing is 3.61 times less risky than FSPG Hi. The stock trades about -0.01 of its potential returns per unit of risk. The FSPG Hi Tech Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 570.00 in FSPG Hi Tech Co on September 1, 2024 and sell it today you would earn a total of 130.00 from holding FSPG Hi Tech Co or generate 22.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. FSPG Hi Tech Co
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| FSPG Hi Tech |
Jiangsu Financial and FSPG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and FSPG Hi
The main advantage of trading using opposite Jiangsu Financial and FSPG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, FSPG Hi 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 FSPG Hi will offset losses from the drop in FSPG Hi's long position.| Jiangsu Financial vs. TongFu Microelectronics Co | Jiangsu Financial vs. Epoxy Base Electronic | Jiangsu Financial vs. CICC Fund Management | Jiangsu Financial vs. Harvest Fund Management |
| FSPG Hi vs. Impulse Qingdao Health | FSPG Hi vs. Eastern Air Logistics | FSPG Hi vs. Meinian Onehealth Healthcare | FSPG Hi vs. Everjoy Health Group |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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