Correlation Between Jiangsu Financial and State Grid
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By analyzing existing cross correlation between Jiangsu Financial Leasing and State Grid InformationCommunication, you can compare the effects of market volatilities on Jiangsu Financial and State Grid 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 State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and State Grid.
Diversification Opportunities for Jiangsu Financial and State Grid
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiangsu and State is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati 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 State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and State Grid go up and down completely randomly.
Pair Corralation between Jiangsu Financial and State Grid
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.63 times more return on investment than State Grid. However, Jiangsu Financial Leasing is 1.6 times less risky than State Grid. It trades about 0.04 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.02 per unit of risk. If you would invest 406.00 in Jiangsu Financial Leasing on October 19, 2024 and sell it today you would earn a total of 119.00 from holding Jiangsu Financial Leasing or generate 29.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. State Grid InformationCommunic
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| State Grid Informati |
Jiangsu Financial and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and State Grid
The main advantage of trading using opposite Jiangsu Financial and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, State Grid 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 State Grid will offset losses from the drop in State Grid's long position.| Jiangsu Financial vs. Guangzhou Jinyi Media | Jiangsu Financial vs. Sanxiang Advanced Materials | Jiangsu Financial vs. Ningbo Tip Rubber | Jiangsu Financial vs. Suzhou Xingye Material |
| State Grid vs. New Hope Dairy | State Grid vs. Shenzhen Topway Video | State Grid vs. Xinjiang Tianrun Dairy | State Grid vs. Great Sun Foods Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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