Correlation Between Jiangsu Financial and Guangzhou Jointas
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Guangzhou Jointas Chemical, you can compare the effects of market volatilities on Jiangsu Financial and Guangzhou Jointas 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 Guangzhou Jointas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Guangzhou Jointas.
Diversification Opportunities for Jiangsu Financial and Guangzhou Jointas
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and Guangzhou is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Guangzhou Jointas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jointas 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 Guangzhou Jointas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jointas has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Guangzhou Jointas go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Guangzhou Jointas
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.41 times more return on investment than Guangzhou Jointas. However, Jiangsu Financial Leasing is 2.45 times less risky than Guangzhou Jointas. It trades about -0.04 of its potential returns per unit of risk. Guangzhou Jointas Chemical is currently generating about -0.32 per unit of risk. If you would invest 514.00 in Jiangsu Financial Leasing on October 12, 2024 and sell it today you would lose (6.00) from holding Jiangsu Financial Leasing or give up 1.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Guangzhou Jointas Chemical
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Guangzhou Jointas |
Jiangsu Financial and Guangzhou Jointas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Guangzhou Jointas
The main advantage of trading using opposite Jiangsu Financial and Guangzhou Jointas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Guangzhou Jointas 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 Guangzhou Jointas will offset losses from the drop in Guangzhou Jointas' long position.| Jiangsu Financial vs. Oppein Home Group | Jiangsu Financial vs. Central Plains Environment | Jiangsu Financial vs. Tongxing Environmental Protection | Jiangsu Financial vs. Shandong Homey Aquatic |
| Guangzhou Jointas vs. Qumei Furniture Group | Guangzhou Jointas vs. Songz Automobile Air | Guangzhou Jointas vs. Zoy Home Furnishing | Guangzhou Jointas vs. Ningbo Fangzheng Automobile |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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