Correlation Between Jiangsu Financial and Songz Automobile
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Songz Automobile Air, you can compare the effects of market volatilities on Jiangsu Financial and Songz Automobile 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 Songz Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Songz Automobile.
Diversification Opportunities for Jiangsu Financial and Songz Automobile
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiangsu and Songz is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Songz Automobile Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songz Automobile Air 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 Songz Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songz Automobile Air has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Songz Automobile go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Songz Automobile
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.7 times more return on investment than Songz Automobile. However, Jiangsu Financial Leasing is 1.43 times less risky than Songz Automobile. It trades about 0.05 of its potential returns per unit of risk. Songz Automobile Air is currently generating about -0.01 per unit of risk. If you would invest 393.00 in Jiangsu Financial Leasing on October 31, 2024 and sell it today you would earn a total of 135.00 from holding Jiangsu Financial Leasing or generate 34.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Songz Automobile Air
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Songz Automobile Air |
Jiangsu Financial and Songz Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Songz Automobile
The main advantage of trading using opposite Jiangsu Financial and Songz Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Songz Automobile 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 Songz Automobile will offset losses from the drop in Songz Automobile's long position.| Jiangsu Financial vs. Semiconductor Manufacturing Intl | Jiangsu Financial vs. Ingenic Semiconductor | Jiangsu Financial vs. Shanghai V Test Semiconductor | Jiangsu Financial vs. Beijing Kaiwen Education |
| Songz Automobile vs. Jiangsu Hoperun Software | Songz Automobile vs. Hangzhou Pinming Software | Songz Automobile vs. Inspur Software Co | Songz Automobile vs. Thunder Software Technology |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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