Correlation Between Jiangsu Financial and Qijing Machinery
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Qijing Machinery, you can compare the effects of market volatilities on Jiangsu Financial and Qijing Machinery 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 Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Qijing Machinery.
Diversification Opportunities for Jiangsu Financial and Qijing Machinery
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiangsu and Qijing is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery 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 Qijing Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qijing Machinery has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Qijing Machinery go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Qijing Machinery
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.37 times more return on investment than Qijing Machinery. However, Jiangsu Financial Leasing is 2.71 times less risky than Qijing Machinery. It trades about -0.04 of its potential returns per unit of risk. Qijing Machinery is currently generating about -0.11 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. Qijing Machinery
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Qijing Machinery |
Jiangsu Financial and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Qijing Machinery
The main advantage of trading using opposite Jiangsu Financial and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Qijing Machinery 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 Qijing Machinery will offset losses from the drop in Qijing Machinery's long position.| Jiangsu Financial vs. Oppein Home Group | Jiangsu Financial vs. Central Plains Environment | Jiangsu Financial vs. Tongxing Environmental Protection | Jiangsu Financial vs. Shandong Homey Aquatic |
| Qijing Machinery vs. Biwin Storage Technology | Qijing Machinery vs. PetroChina Co Ltd | Qijing Machinery vs. Industrial and Commercial | Qijing Machinery vs. China Construction Bank |
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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