Correlation Between Jiangsu Financial and Xiamen Bank
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Xiamen Bank Co, you can compare the effects of market volatilities on Jiangsu Financial and Xiamen Bank 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 Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Xiamen Bank.
Diversification Opportunities for Jiangsu Financial and Xiamen Bank
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Xiamen is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank 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 Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Xiamen Bank go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Xiamen Bank
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to under-perform the Xiamen Bank. In addition to that, Jiangsu Financial is 1.16 times more volatile than Xiamen Bank Co. It trades about -0.13 of its total potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.16 per unit of volatility. If you would invest 520.00 in Xiamen Bank Co on August 28, 2024 and sell it today you would earn a total of 32.00 from holding Xiamen Bank Co or generate 6.15% 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. Xiamen Bank Co
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Xiamen Bank |
Jiangsu Financial and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Xiamen Bank
The main advantage of trading using opposite Jiangsu Financial and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank's long position.| Jiangsu Financial vs. Kweichow Moutai Co | Jiangsu Financial vs. Contemporary Amperex Technology | Jiangsu Financial vs. G bits Network Technology | Jiangsu Financial vs. Beijing Roborock Technology |
| Xiamen Bank vs. China Nonferrous Metal | Xiamen Bank vs. Pengxin International Mining | Xiamen Bank vs. Guangzhou Haozhi Industrial | Xiamen Bank vs. Miracll Chemicals 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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