Correlation Between Jiangsu Financial and Shanghai Ziyan
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Jiangsu Financial and Shanghai Ziyan 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 Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Shanghai Ziyan.
Diversification Opportunities for Jiangsu Financial and Shanghai Ziyan
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiangsu and Shanghai is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Shanghai Ziyan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Ziyan Foods 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 Shanghai Ziyan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Ziyan Foods has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Shanghai Ziyan
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.7 times more return on investment than Shanghai Ziyan. However, Jiangsu Financial Leasing is 1.43 times less risky than Shanghai Ziyan. It trades about 0.03 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about -0.03 per unit of risk. If you would invest 406.00 in Jiangsu Financial Leasing on October 14, 2024 and sell it today you would earn a total of 92.00 from holding Jiangsu Financial Leasing or generate 22.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Shanghai Ziyan Foods |
Jiangsu Financial and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Shanghai Ziyan
The main advantage of trading using opposite Jiangsu Financial and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Shanghai Ziyan 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 Shanghai Ziyan will offset losses from the drop in Shanghai Ziyan's long position.| Jiangsu Financial vs. Zhejiang Yinlun Machinery | Jiangsu Financial vs. Shenyang Blue Silver | Jiangsu Financial vs. MayAir Technology Co | Jiangsu Financial vs. Shenzhen Zhongzhuang Construction |
| Shanghai Ziyan vs. Xiamen Bank Co | Shanghai Ziyan vs. Inspur Software Co | Shanghai Ziyan vs. China Everbright Bank | Shanghai Ziyan 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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