Correlation Between Jiangsu Financial and Guangdong Jingyi
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Jiangsu Financial and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Guangdong Jingyi.
Diversification Opportunities for Jiangsu Financial and Guangdong Jingyi
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jiangsu and Guangdong is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Guangdong Jingyi
Assuming the 90 days trading horizon Jiangsu Financial is expected to generate 3.73 times less return on investment than Guangdong Jingyi. But when comparing it to its historical volatility, Jiangsu Financial Leasing is 1.29 times less risky than Guangdong Jingyi. It trades about 0.04 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 508.00 in Guangdong Jingyi Metal on November 3, 2024 and sell it today you would earn a total of 221.00 from holding Guangdong Jingyi Metal or generate 43.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Guangdong Jingyi Metal |
Jiangsu Financial and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Guangdong Jingyi
The main advantage of trading using opposite Jiangsu Financial and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Jiangsu Financial vs. Industrial and Commercial | Jiangsu Financial vs. Agricultural Bank of | Jiangsu Financial vs. China Construction Bank | Jiangsu Financial vs. Bank of China |
| Guangdong Jingyi vs. Sinomach Automobile Co | Guangdong Jingyi vs. Pengxin International Mining | Guangdong Jingyi vs. Fiberhome Telecommunication Technologies | Guangdong Jingyi vs. Shengda Mining 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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