Correlation Between Jiangsu Financial and Keeson Technology
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Keeson Technology Corp, you can compare the effects of market volatilities on Jiangsu Financial and Keeson Technology 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 Keeson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Keeson Technology.
Diversification Opportunities for Jiangsu Financial and Keeson Technology
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiangsu and Keeson is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Keeson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeson Technology Corp 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 Keeson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keeson Technology Corp has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Keeson Technology go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Keeson Technology
Assuming the 90 days trading horizon Jiangsu Financial is expected to generate 2.2 times less return on investment than Keeson Technology. But when comparing it to its historical volatility, Jiangsu Financial Leasing is 4.14 times less risky than Keeson Technology. It trades about 0.05 of its potential returns per unit of risk. Keeson Technology Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,064 in Keeson Technology Corp on October 18, 2024 and sell it today you would lose (4.00) from holding Keeson Technology Corp or give up 0.38% 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. Keeson Technology Corp
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Keeson Technology Corp |
Jiangsu Financial and Keeson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Keeson Technology
The main advantage of trading using opposite Jiangsu Financial and Keeson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Keeson Technology 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 Keeson Technology will offset losses from the drop in Keeson Technology's long position.| Jiangsu Financial vs. Leyard Optoelectronic | Jiangsu Financial vs. Sihui Fuji Electronics | Jiangsu Financial vs. Jinlong Machinery Electronic | Jiangsu Financial vs. HaiXin Foods Co |
| Keeson Technology vs. Kweichow Moutai Co | Keeson Technology vs. NAURA Technology Group | Keeson Technology vs. Zhejiang Orient Gene | Keeson Technology vs. APT Medical |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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