Correlation Between Jiangsu Financial and China Express
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By analyzing existing cross correlation between Jiangsu Financial Leasing and China Express Airlines, you can compare the effects of market volatilities on Jiangsu Financial and China Express 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 China Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and China Express.
Diversification Opportunities for Jiangsu Financial and China Express
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and China is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and China Express Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Express Airlines 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 China Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Express Airlines has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and China Express go up and down completely randomly.
Pair Corralation between Jiangsu Financial and China Express
Assuming the 90 days trading horizon Jiangsu Financial is expected to generate 2.68 times less return on investment than China Express. But when comparing it to its historical volatility, Jiangsu Financial Leasing is 1.25 times less risky than China Express. It trades about 0.1 of its potential returns per unit of risk. China Express Airlines is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 565.00 in China Express Airlines on September 4, 2024 and sell it today you would earn a total of 255.00 from holding China Express Airlines or generate 45.13% 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. China Express Airlines
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| China Express Airlines |
Jiangsu Financial and China Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and China Express
The main advantage of trading using opposite Jiangsu Financial and China Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, China Express 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 China Express will offset losses from the drop in China Express' long position.| Jiangsu Financial vs. China Petroleum Chemical | Jiangsu Financial vs. PetroChina Co Ltd | Jiangsu Financial vs. China State Construction | Jiangsu Financial vs. China Railway Group |
| China Express vs. DO Home Collection | China Express vs. TongFu Microelectronics Co | China Express vs. Shandong Homey Aquatic | China Express vs. Zoy Home Furnishing |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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