Correlation Between Jiangsu Financial and Shandong Ruifeng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Financial Leasing and Shandong Ruifeng Chemical, you can compare the effects of market volatilities on Jiangsu Financial and Shandong Ruifeng 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 Shandong Ruifeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Shandong Ruifeng.
Diversification Opportunities for Jiangsu Financial and Shandong Ruifeng
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiangsu and Shandong is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Shandong Ruifeng Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Ruifeng Chemical 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 Shandong Ruifeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Ruifeng Chemical has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Shandong Ruifeng go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Shandong Ruifeng
Assuming the 90 days trading horizon Jiangsu Financial is expected to generate 1.18 times less return on investment than Shandong Ruifeng. But when comparing it to its historical volatility, Jiangsu Financial Leasing is 1.09 times less risky than Shandong Ruifeng. It trades about 0.05 of its potential returns per unit of risk. Shandong Ruifeng Chemical is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 920.00 in Shandong Ruifeng Chemical on November 8, 2024 and sell it today you would earn a total of 12.00 from holding Shandong Ruifeng Chemical or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Shandong Ruifeng Chemical
Performance |
| Timeline |
| Jiangsu Financial Leasing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Shandong Ruifeng Chemical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jiangsu Financial and Shandong Ruifeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Shandong Ruifeng
The main advantage of trading using opposite Jiangsu Financial and Shandong Ruifeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Shandong Ruifeng 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 Shandong Ruifeng will offset losses from the drop in Shandong Ruifeng's long position.The idea behind Jiangsu Financial Leasing and Shandong Ruifeng Chemical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |