Correlation Between Jiangsu Financial and East Money
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Financial Leasing and East Money Information, you can compare the effects of market volatilities on Jiangsu Financial and East Money 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 East Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and East Money.
Diversification Opportunities for Jiangsu Financial and East Money
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and East is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and East Money Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Money Information 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 East Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Money Information has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and East Money go up and down completely randomly.
Pair Corralation between Jiangsu Financial and East Money
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.36 times more return on investment than East Money. However, Jiangsu Financial Leasing is 2.75 times less risky than East Money. It trades about -0.06 of its potential returns per unit of risk. East Money Information is currently generating about -0.02 per unit of risk. If you would invest 522.00 in Jiangsu Financial Leasing on September 13, 2024 and sell it today you would lose (8.00) from holding Jiangsu Financial Leasing or give up 1.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. East Money Information
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| East Money Information |
Jiangsu Financial and East Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and East Money
The main advantage of trading using opposite Jiangsu Financial and East Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, East Money 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 East Money will offset losses from the drop in East Money's long position.| Jiangsu Financial vs. Qingdao Choho Industrial | Jiangsu Financial vs. Qijing Machinery | Jiangsu Financial vs. Nanxing Furniture Machinery | Jiangsu Financial vs. Sinomach General Machinery |
| East Money vs. Kweichow Moutai Co | East Money vs. Shenzhen Mindray Bio Medical | East Money vs. G bits Network Technology | East Money vs. Beijing Roborock Technology |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |