Correlation Between Jiangsu Financial and China Galaxy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Financial Leasing and China Galaxy Securities, you can compare the effects of market volatilities on Jiangsu Financial and China Galaxy 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 China Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and China Galaxy.
Diversification Opportunities for Jiangsu Financial and China Galaxy
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiangsu and China is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and China Galaxy Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Galaxy Securities 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 China Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Galaxy Securities has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and China Galaxy go up and down completely randomly.
Pair Corralation between Jiangsu Financial and China Galaxy
Assuming the 90 days trading horizon Jiangsu Financial is expected to generate 1.7 times less return on investment than China Galaxy. But when comparing it to its historical volatility, Jiangsu Financial Leasing is 1.58 times less risky than China Galaxy. It trades about 0.04 of its potential returns per unit of risk. China Galaxy Securities is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 972.00 in China Galaxy Securities on October 16, 2024 and sell it today you would earn a total of 375.00 from holding China Galaxy Securities or generate 38.58% 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. China Galaxy Securities
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| China Galaxy Securities |
Jiangsu Financial and China Galaxy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and China Galaxy
The main advantage of trading using opposite Jiangsu Financial and China Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, China Galaxy 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 China Galaxy will offset losses from the drop in China Galaxy'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 |
| China Galaxy vs. Hongrun Construction Group | China Galaxy vs. Oppein Home Group | China Galaxy vs. Jiugui Liquor Co | China Galaxy vs. Hunan Tyen Machinery |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |