Correlation Between Jiangsu Financial and Innovative Medical
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Innovative Medical Management, you can compare the effects of market volatilities on Jiangsu Financial and Innovative Medical 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 Innovative Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Innovative Medical.
Diversification Opportunities for Jiangsu Financial and Innovative Medical
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiangsu and Innovative is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Innovative Medical Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Medical 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 Innovative Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Medical has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Innovative Medical go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Innovative Medical
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.21 times more return on investment than Innovative Medical. However, Jiangsu Financial Leasing is 4.81 times less risky than Innovative Medical. It trades about -0.1 of its potential returns per unit of risk. Innovative Medical Management is currently generating about -0.11 per unit of risk. If you would invest 520.00 in Jiangsu Financial Leasing on October 10, 2024 and sell it today you would lose (12.00) from holding Jiangsu Financial Leasing or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Innovative Medical Management
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Innovative Medical |
Jiangsu Financial and Innovative Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Innovative Medical
The main advantage of trading using opposite Jiangsu Financial and Innovative Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Innovative Medical 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 Innovative Medical will offset losses from the drop in Innovative Medical's long position.| Jiangsu Financial vs. Xiandai Investment Co | Jiangsu Financial vs. Tieling Newcity Investment | Jiangsu Financial vs. Shanghai Newtouch Software | Jiangsu Financial vs. Nuode Investment Co |
| Innovative Medical vs. Gifore Agricultural Machinery | Innovative Medical vs. Hubei Forbon Technology | Innovative Medical vs. Anhui Huilong Agricultural | Innovative Medical vs. Linewell Software 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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