Correlation Between Jiangsu Financial and Penyao Environmental
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Penyao Environmental Protection, you can compare the effects of market volatilities on Jiangsu Financial and Penyao Environmental 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 Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Penyao Environmental.
Diversification Opportunities for Jiangsu Financial and Penyao Environmental
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Penyao is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao Environmental 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 Penyao Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penyao Environmental has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Penyao Environmental go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Penyao Environmental
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to under-perform the Penyao Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Financial Leasing is 3.01 times less risky than Penyao Environmental. The stock trades about -0.03 of its potential returns per unit of risk. The Penyao Environmental Protection is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 495.00 in Penyao Environmental Protection on September 4, 2024 and sell it today you would earn a total of 136.00 from holding Penyao Environmental Protection or generate 27.47% 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. Penyao Environmental Protectio
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Penyao Environmental |
Jiangsu Financial and Penyao Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Penyao Environmental
The main advantage of trading using opposite Jiangsu Financial and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Penyao Environmental 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 Penyao Environmental will offset losses from the drop in Penyao Environmental's 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 |
| Penyao Environmental vs. Industrial and Commercial | Penyao Environmental vs. Agricultural Bank of | Penyao Environmental vs. China Construction Bank | Penyao Environmental vs. Bank of China |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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