Correlation Between Jiangsu Financial and Xilinmen Furniture
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Financial Leasing and Xilinmen Furniture Co, you can compare the effects of market volatilities on Jiangsu Financial and Xilinmen Furniture 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 Xilinmen Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Xilinmen Furniture.
Diversification Opportunities for Jiangsu Financial and Xilinmen Furniture
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Xilinmen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Xilinmen Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilinmen Furniture 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 Xilinmen Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilinmen Furniture has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Xilinmen Furniture go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Xilinmen Furniture
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.69 times more return on investment than Xilinmen Furniture. However, Jiangsu Financial Leasing is 1.46 times less risky than Xilinmen Furniture. It trades about -0.05 of its potential returns per unit of risk. Xilinmen Furniture Co is currently generating about -0.06 per unit of risk. If you would invest 522.00 in Jiangsu Financial Leasing on September 3, 2024 and sell it today you would lose (11.00) from holding Jiangsu Financial Leasing or give up 2.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Xilinmen Furniture Co
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Xilinmen Furniture |
Jiangsu Financial and Xilinmen Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Xilinmen Furniture
The main advantage of trading using opposite Jiangsu Financial and Xilinmen Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Xilinmen Furniture 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 Xilinmen Furniture will offset losses from the drop in Xilinmen Furniture's long position.| Jiangsu Financial vs. Jinling Hotel Corp | Jiangsu Financial vs. Air China Ltd | Jiangsu Financial vs. Fujian Oriental Silver | Jiangsu Financial vs. Chenzhou Jingui Silver |
| Xilinmen Furniture vs. Tongxing Environmental Protection | Xilinmen Furniture vs. Ningbo Ligong Online | Xilinmen Furniture vs. Guangdong Advertising Co | Xilinmen Furniture vs. Bengang Steel Plates |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Directory Find actively traded commodities issued by global exchanges |