Correlation Between Jiangsu Financial and Rising Nonferrous
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Rising Nonferrous Metals, you can compare the effects of market volatilities on Jiangsu Financial and Rising Nonferrous 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 Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Rising Nonferrous.
Diversification Opportunities for Jiangsu Financial and Rising Nonferrous
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiangsu and Rising is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Rising Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rising Nonferrous Metals 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 Rising Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rising Nonferrous Metals has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Rising Nonferrous
Assuming the 90 days trading horizon Jiangsu Financial is expected to generate 2.86 times less return on investment than Rising Nonferrous. But when comparing it to its historical volatility, Jiangsu Financial Leasing is 1.93 times less risky than Rising Nonferrous. It trades about 0.09 of its potential returns per unit of risk. Rising Nonferrous Metals is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,828 in Rising Nonferrous Metals on October 22, 2024 and sell it today you would earn a total of 189.00 from holding Rising Nonferrous Metals or generate 6.68% 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. Rising Nonferrous Metals
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Rising Nonferrous Metals |
Jiangsu Financial and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Rising Nonferrous
The main advantage of trading using opposite Jiangsu Financial and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Rising Nonferrous 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 Rising Nonferrous will offset losses from the drop in Rising Nonferrous' long position.| Jiangsu Financial vs. Tangel Publishing | Jiangsu Financial vs. Heren Health Co | Jiangsu Financial vs. Offcn Education Technology | Jiangsu Financial vs. Zhejiang Publishing Media |
| Rising Nonferrous vs. Fujian Oriental Silver | Rising Nonferrous vs. Shenzhen Silver Basis | Rising Nonferrous vs. Invengo Information Technology | Rising Nonferrous vs. Tongding Interconnection Information |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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