Correlation Between Jiangsu Financial and Beijing Ultrapower
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Beijing Ultrapower Software, you can compare the effects of market volatilities on Jiangsu Financial and Beijing Ultrapower 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 Beijing Ultrapower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Beijing Ultrapower.
Diversification Opportunities for Jiangsu Financial and Beijing Ultrapower
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangsu and Beijing is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Beijing Ultrapower Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Ultrapower 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 Beijing Ultrapower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Ultrapower has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Beijing Ultrapower go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Beijing Ultrapower
Assuming the 90 days trading horizon Jiangsu Financial is expected to generate 7.19 times less return on investment than Beijing Ultrapower. But when comparing it to its historical volatility, Jiangsu Financial Leasing is 1.92 times less risky than Beijing Ultrapower. It trades about 0.01 of its potential returns per unit of risk. Beijing Ultrapower Software is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 906.00 in Beijing Ultrapower Software on October 30, 2024 and sell it today you would earn a total of 340.00 from holding Beijing Ultrapower Software or generate 37.53% 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. Beijing Ultrapower Software
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Beijing Ultrapower |
Jiangsu Financial and Beijing Ultrapower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Beijing Ultrapower
The main advantage of trading using opposite Jiangsu Financial and Beijing Ultrapower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Beijing Ultrapower 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 Beijing Ultrapower will offset losses from the drop in Beijing Ultrapower's long position.| Jiangsu Financial vs. Spring Airlines Co | Jiangsu Financial vs. Wintao Communications Co | Jiangsu Financial vs. Kuang Chi Technologies | Jiangsu Financial vs. Caihong Display Devices |
| Beijing Ultrapower vs. Hainan Mining Co | Beijing Ultrapower vs. Queclink Wireless Solutions | Beijing Ultrapower vs. Anhui Transport Consulting | Beijing Ultrapower vs. Huaibei Mining Holdings |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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