Correlation Between Jiangsu Financial and A Zenith
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By analyzing existing cross correlation between Jiangsu Financial Leasing and A Zenith Home Furnishings, you can compare the effects of market volatilities on Jiangsu Financial and A Zenith 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 A Zenith. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and A Zenith.
Diversification Opportunities for Jiangsu Financial and A Zenith
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jiangsu and 603389 is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and A Zenith Home Furnishings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A Zenith Home 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 A Zenith. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A Zenith Home has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and A Zenith go up and down completely randomly.
Pair Corralation between Jiangsu Financial and A Zenith
Assuming the 90 days trading horizon Jiangsu Financial is expected to generate 1.29 times less return on investment than A Zenith. But when comparing it to its historical volatility, Jiangsu Financial Leasing is 2.62 times less risky than A Zenith. It trades about 0.04 of its potential returns per unit of risk. A Zenith Home Furnishings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 572.00 in A Zenith Home Furnishings on October 23, 2024 and sell it today you would lose (34.00) from holding A Zenith Home Furnishings or give up 5.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. A Zenith Home Furnishings
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| A Zenith Home |
Jiangsu Financial and A Zenith Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and A Zenith
The main advantage of trading using opposite Jiangsu Financial and A Zenith positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, A Zenith 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 A Zenith will offset losses from the drop in A Zenith's long position.| Jiangsu Financial vs. China Longyuan Power | Jiangsu Financial vs. PetroChina Co Ltd | Jiangsu Financial vs. Guangxi Guiguan Electric | Jiangsu Financial vs. Yantai North Andre |
| A Zenith vs. BeiGene | A Zenith vs. Kweichow Moutai Co | A Zenith vs. Beijing Roborock Technology | A Zenith vs. G bits Network Technology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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