Correlation Between Jiangsu Financial and Thinkingdom Media
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Thinkingdom Media Group, you can compare the effects of market volatilities on Jiangsu Financial and Thinkingdom Media 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 Thinkingdom Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Thinkingdom Media.
Diversification Opportunities for Jiangsu Financial and Thinkingdom Media
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and Thinkingdom is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Thinkingdom Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkingdom Media 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 Thinkingdom Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkingdom Media has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Thinkingdom Media go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Thinkingdom Media
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.38 times more return on investment than Thinkingdom Media. However, Jiangsu Financial Leasing is 2.61 times less risky than Thinkingdom Media. It trades about -0.04 of its potential returns per unit of risk. Thinkingdom Media Group is currently generating about -0.02 per unit of risk. If you would invest 514.00 in Jiangsu Financial Leasing on October 12, 2024 and sell it today you would lose (6.00) from holding Jiangsu Financial Leasing or give up 1.17% 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. Thinkingdom Media Group
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Thinkingdom Media |
Jiangsu Financial and Thinkingdom Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Thinkingdom Media
The main advantage of trading using opposite Jiangsu Financial and Thinkingdom Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Thinkingdom Media 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 Thinkingdom Media will offset losses from the drop in Thinkingdom Media's long position.| Jiangsu Financial vs. Changchun Engley Automobile | Jiangsu Financial vs. Touchstone International Medical | Jiangsu Financial vs. Nanjing Vishee Medical | Jiangsu Financial vs. Tinavi Medical Technologies |
| Thinkingdom Media vs. Bohai Leasing Co | Thinkingdom Media vs. Chongqing Brewery Co | Thinkingdom Media vs. Jiangsu Financial Leasing | Thinkingdom Media vs. China Reform Health |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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