Correlation Between Jiangsu Financial and Allwin Telecommunicatio
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Allwin Telecommunication Co, you can compare the effects of market volatilities on Jiangsu Financial and Allwin Telecommunicatio 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 Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Allwin Telecommunicatio.
Diversification Opportunities for Jiangsu Financial and Allwin Telecommunicatio
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Allwin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio 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 Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Allwin Telecommunicatio
Assuming the 90 days trading horizon Jiangsu Financial is expected to generate 5.36 times less return on investment than Allwin Telecommunicatio. But when comparing it to its historical volatility, Jiangsu Financial Leasing is 2.35 times less risky than Allwin Telecommunicatio. It trades about 0.02 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 456.00 in Allwin Telecommunication Co on August 29, 2024 and sell it today you would earn a total of 142.00 from holding Allwin Telecommunication Co or generate 31.14% 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. Allwin Telecommunication Co
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Allwin Telecommunicatio |
Jiangsu Financial and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Allwin Telecommunicatio
The main advantage of trading using opposite Jiangsu Financial and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Jiangsu Financial vs. Kweichow Moutai Co | Jiangsu Financial vs. Contemporary Amperex Technology | Jiangsu Financial vs. G bits Network Technology | Jiangsu Financial vs. BYD Co Ltd |
| Allwin Telecommunicatio vs. Anhui Deli Household | Allwin Telecommunicatio vs. Soyea Technology Co | Allwin Telecommunicatio vs. Holitech Technology Co | Allwin Telecommunicatio vs. Jahen Household Products |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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