Correlation Between Jiangsu Financial and Hainan Drinda
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Hainan Drinda Automotive, you can compare the effects of market volatilities on Jiangsu Financial and Hainan Drinda 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 Hainan Drinda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Hainan Drinda.
Diversification Opportunities for Jiangsu Financial and Hainan Drinda
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Hainan is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Hainan Drinda Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Drinda Automotive 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 Hainan Drinda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Drinda Automotive has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Hainan Drinda go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Hainan Drinda
Assuming the 90 days trading horizon Jiangsu Financial is expected to generate 1.47 times less return on investment than Hainan Drinda. But when comparing it to its historical volatility, Jiangsu Financial Leasing is 2.2 times less risky than Hainan Drinda. It trades about 0.02 of its potential returns per unit of risk. Hainan Drinda Automotive is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 6,938 in Hainan Drinda Automotive on September 14, 2024 and sell it today you would lose (643.00) from holding Hainan Drinda Automotive or give up 9.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Hainan Drinda Automotive
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Hainan Drinda Automotive |
Jiangsu Financial and Hainan Drinda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Hainan Drinda
The main advantage of trading using opposite Jiangsu Financial and Hainan Drinda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Hainan Drinda 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 Hainan Drinda will offset losses from the drop in Hainan Drinda's long position.| Jiangsu Financial vs. INKON Life Technology | Jiangsu Financial vs. Changchun UP Optotech | Jiangsu Financial vs. Shaanxi Energy Investment | Jiangsu Financial vs. Yuan Longping High tech |
| Hainan Drinda vs. Tieling Newcity Investment | Hainan Drinda vs. China Sports Industry | Hainan Drinda vs. Vanfund Urban Investment | Hainan Drinda vs. Beijing Mainstreets Investment |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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