Correlation Between Jiangsu Financial and Chongqing Sulian
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Chongqing Sulian Plastic, you can compare the effects of market volatilities on Jiangsu Financial and Chongqing Sulian 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 Chongqing Sulian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Chongqing Sulian.
Diversification Opportunities for Jiangsu Financial and Chongqing Sulian
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jiangsu and Chongqing is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Chongqing Sulian Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sulian Plastic 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 Chongqing Sulian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sulian Plastic has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Chongqing Sulian go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Chongqing Sulian
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.58 times more return on investment than Chongqing Sulian. However, Jiangsu Financial Leasing is 1.71 times less risky than Chongqing Sulian. It trades about -0.07 of its potential returns per unit of risk. Chongqing Sulian Plastic is currently generating about -0.38 per unit of risk. If you would invest 508.00 in Jiangsu Financial Leasing on October 16, 2024 and sell it today you would lose (10.00) from holding Jiangsu Financial Leasing or give up 1.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Chongqing Sulian Plastic
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Chongqing Sulian Plastic |
Jiangsu Financial and Chongqing Sulian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Chongqing Sulian
The main advantage of trading using opposite Jiangsu Financial and Chongqing Sulian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Chongqing Sulian 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 Chongqing Sulian will offset losses from the drop in Chongqing Sulian's long position.| Jiangsu Financial vs. Guangzhou Seagull Kitchen | Jiangsu Financial vs. Anhui Deli Household | Jiangsu Financial vs. Anhui Gujing Distillery | Jiangsu Financial vs. Shanghai Jinfeng Wine |
| Chongqing Sulian vs. Wuhan Hvsen Biotechnology | Chongqing Sulian vs. Goodwill E Health | Chongqing Sulian vs. Jiangsu GDK Biotechnology | Chongqing Sulian vs. Sanbo Hospital Management |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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