Correlation Between Jiangsu Financial and Zhongjing Food
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Zhongjing Food Co, you can compare the effects of market volatilities on Jiangsu Financial and Zhongjing Food 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 Zhongjing Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Zhongjing Food.
Diversification Opportunities for Jiangsu Financial and Zhongjing Food
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiangsu and Zhongjing is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Zhongjing Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongjing Food 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 Zhongjing Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongjing Food has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Zhongjing Food go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Zhongjing Food
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to under-perform the Zhongjing Food. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Financial Leasing is 2.12 times less risky than Zhongjing Food. The stock trades about -0.02 of its potential returns per unit of risk. The Zhongjing Food Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,986 in Zhongjing Food Co on October 25, 2024 and sell it today you would earn a total of 16.00 from holding Zhongjing Food Co or generate 0.54% 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. Zhongjing Food Co
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Zhongjing Food |
Jiangsu Financial and Zhongjing Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Zhongjing Food
The main advantage of trading using opposite Jiangsu Financial and Zhongjing Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Zhongjing Food 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 Zhongjing Food will offset losses from the drop in Zhongjing Food's long position.| Jiangsu Financial vs. Jiangsu Jinling Sports | Jiangsu Financial vs. Kidswant Children Products | Jiangsu Financial vs. Shenzhen Zqgame | Jiangsu Financial vs. Xinjiang Baodi Mining |
| Zhongjing Food vs. Agricultural Bank of | Zhongjing Food vs. Postal Savings Bank | Zhongjing Food vs. Bank of Communications | Zhongjing Food vs. China Merchants Bank |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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