Correlation Between Jiangsu Financial and Huitong Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Financial Leasing and Huitong Construction Group, you can compare the effects of market volatilities on Jiangsu Financial and Huitong Construction 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 Huitong Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Huitong Construction.
Diversification Opportunities for Jiangsu Financial and Huitong Construction
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Huitong is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Huitong Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huitong Construction 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 Huitong Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huitong Construction has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Huitong Construction go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Huitong Construction
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.6 times more return on investment than Huitong Construction. However, Jiangsu Financial Leasing is 1.66 times less risky than Huitong Construction. It trades about 0.03 of its potential returns per unit of risk. Huitong Construction Group is currently generating about -0.01 per unit of risk. If you would invest 449.00 in Jiangsu Financial Leasing on September 12, 2024 and sell it today you would earn a total of 69.00 from holding Jiangsu Financial Leasing or generate 15.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Huitong Construction Group
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Huitong Construction |
Jiangsu Financial and Huitong Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Huitong Construction
The main advantage of trading using opposite Jiangsu Financial and Huitong Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Huitong Construction 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 Huitong Construction will offset losses from the drop in Huitong Construction's long position.| Jiangsu Financial vs. China Petroleum Chemical | Jiangsu Financial vs. PetroChina Co Ltd | Jiangsu Financial vs. China Mobile Limited | Jiangsu Financial vs. Industrial and Commercial |
| Huitong Construction vs. Agricultural Bank of | Huitong Construction vs. Shanghai CEO Environmental | Huitong Construction vs. JCHX Mining Management | Huitong Construction 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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |