Correlation Between Jiangsu Financial and King Strong
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By analyzing existing cross correlation between Jiangsu Financial Leasing and King Strong New Material, you can compare the effects of market volatilities on Jiangsu Financial and King Strong 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 King Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and King Strong.
Diversification Opportunities for Jiangsu Financial and King Strong
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and King is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and King Strong New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Strong New 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 King Strong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Strong New has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and King Strong go up and down completely randomly.
Pair Corralation between Jiangsu Financial and King Strong
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.28 times more return on investment than King Strong. However, Jiangsu Financial Leasing is 3.52 times less risky than King Strong. It trades about 0.25 of its potential returns per unit of risk. King Strong New Material is currently generating about 0.06 per unit of risk. If you would invest 497.00 in Jiangsu Financial Leasing on September 27, 2024 and sell it today you would earn a total of 23.00 from holding Jiangsu Financial Leasing or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. King Strong New Material
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| King Strong New |
Jiangsu Financial and King Strong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and King Strong
The main advantage of trading using opposite Jiangsu Financial and King Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, King Strong 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 King Strong will offset losses from the drop in King Strong's long position.| Jiangsu Financial vs. Ming Yang Smart | Jiangsu Financial vs. 159681 | Jiangsu Financial vs. 159005 | Jiangsu Financial vs. Loctek Ergonomic Technology |
| King Strong vs. Emdoor Information Co | King Strong vs. Yonyou Auto Information | King Strong vs. Jiangsu Financial Leasing | King Strong vs. Talkweb Information System |
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 CEOs Directory module to screen CEOs from public companies around the world.
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