Correlation Between Jiangsu Financial and Inner Mongolia
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Inner Mongolia Dazhong, you can compare the effects of market volatilities on Jiangsu Financial and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Inner Mongolia.
Diversification Opportunities for Jiangsu Financial and Inner Mongolia
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Inner is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Inner Mongolia Dazhong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Dazhong 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Dazhong has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Inner Mongolia go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Inner Mongolia
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.36 times more return on investment than Inner Mongolia. However, Jiangsu Financial Leasing is 2.78 times less risky than Inner Mongolia. It trades about -0.05 of its potential returns per unit of risk. Inner Mongolia Dazhong is currently generating about -0.02 per unit of risk. If you would invest 512.00 in Jiangsu Financial Leasing on September 15, 2024 and sell it today you would lose (7.00) from holding Jiangsu Financial Leasing or give up 1.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Inner Mongolia Dazhong
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Inner Mongolia Dazhong |
Jiangsu Financial and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Inner Mongolia
The main advantage of trading using opposite Jiangsu Financial and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| Jiangsu Financial vs. Kweichow Moutai Co | Jiangsu Financial vs. Shenzhen Mindray Bio Medical | Jiangsu Financial vs. G bits Network Technology | Jiangsu Financial vs. Shenzhen Transsion Holdings |
| Inner Mongolia vs. Jiangsu Financial Leasing | Inner Mongolia vs. Harbin Hatou Investment | Inner Mongolia vs. China Construction Bank | Inner Mongolia vs. Beijing Mainstreets Investment |
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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