Correlation Between Jiangsu Financial and Shaanxi Energy
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Shaanxi Energy Investment, you can compare the effects of market volatilities on Jiangsu Financial and Shaanxi 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 Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Shaanxi Energy.
Diversification Opportunities for Jiangsu Financial and Shaanxi Energy
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Shaanxi is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy Investment 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 Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Shaanxi Energy go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Shaanxi Energy
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to under-perform the Shaanxi Energy. In addition to that, Jiangsu Financial is 1.31 times more volatile than Shaanxi Energy Investment. It trades about -0.03 of its total potential returns per unit of risk. Shaanxi Energy Investment is currently generating about 0.03 per unit of volatility. If you would invest 961.00 in Shaanxi Energy Investment on September 5, 2024 and sell it today you would earn a total of 6.00 from holding Shaanxi Energy Investment or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Shaanxi Energy Investment
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Shaanxi Energy Investment |
Jiangsu Financial and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Shaanxi Energy
The main advantage of trading using opposite Jiangsu Financial and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Shaanxi 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy's long position.| Jiangsu Financial vs. China Petroleum Chemical | Jiangsu Financial vs. PetroChina Co Ltd | Jiangsu Financial vs. China State Construction | Jiangsu Financial vs. China Railway Group |
| Shaanxi Energy vs. Hengli Petrochemical Co | Shaanxi Energy vs. Chenzhou Jingui Silver | Shaanxi Energy vs. Chengtun Mining Group | Shaanxi Energy vs. Jiangsu Financial Leasing |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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