Correlation Between Jiangsu Financial and Der International
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Financial Leasing and Der International Home, you can compare the effects of market volatilities on Jiangsu Financial and Der International 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 Der International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Der International.
Diversification Opportunities for Jiangsu Financial and Der International
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Der is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Der International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Der International Home 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 Der International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Der International Home has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Der International go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Der International
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to under-perform the Der International. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Financial Leasing is 1.73 times less risky than Der International. The stock trades about -0.05 of its potential returns per unit of risk. The Der International Home is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 456.00 in Der International Home on September 3, 2024 and sell it today you would earn a total of 56.00 from holding Der International Home or generate 12.28% 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. Der International Home
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Der International Home |
Jiangsu Financial and Der International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Der International
The main advantage of trading using opposite Jiangsu Financial and Der International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Der International 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 Der International will offset losses from the drop in Der International's long position.| Jiangsu Financial vs. Jinling Hotel Corp | Jiangsu Financial vs. Air China Ltd | Jiangsu Financial vs. Fujian Oriental Silver | Jiangsu Financial vs. Chenzhou Jingui Silver |
| Der International vs. Marssenger Kitchenware Co | Der International vs. Shenzhen Noposion Agrochemicals | Der International vs. Chahua Modern Housewares | Der International vs. HUAQIN TECHNOLOGY LTD |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |