Correlation Between Jiangsu Financial and Heilongjiang Transport
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Heilongjiang Transport Development, you can compare the effects of market volatilities on Jiangsu Financial and Heilongjiang Transport 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 Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Heilongjiang Transport.
Diversification Opportunities for Jiangsu Financial and Heilongjiang Transport
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiangsu and Heilongjiang is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport 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 Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Heilongjiang Transport
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.45 times more return on investment than Heilongjiang Transport. However, Jiangsu Financial Leasing is 2.22 times less risky than Heilongjiang Transport. It trades about -0.07 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about -0.22 per unit of risk. If you would invest 518.00 in Jiangsu Financial Leasing on October 11, 2024 and sell it today you would lose (10.00) from holding Jiangsu Financial Leasing or give up 1.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Heilongjiang Transport |
Jiangsu Financial and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Heilongjiang Transport
The main advantage of trading using opposite Jiangsu Financial and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.| Jiangsu Financial vs. Oppein Home Group | Jiangsu Financial vs. Central Plains Environment | Jiangsu Financial vs. Tongxing Environmental Protection | Jiangsu Financial vs. Shandong Homey Aquatic |
| Heilongjiang Transport vs. Ningbo Tech Bank Co | Heilongjiang Transport vs. Huatian Hotel Group | Heilongjiang Transport vs. Jinling Hotel Corp | Heilongjiang Transport vs. Jiangsu Financial Leasing |
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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