Correlation Between Jiangsu Financial and Guangdong Marubi
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Jiangsu Financial and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Guangdong Marubi.
Diversification Opportunities for Jiangsu Financial and Guangdong Marubi
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jiangsu and Guangdong is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Guangdong Marubi
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.66 times more return on investment than Guangdong Marubi. However, Jiangsu Financial Leasing is 1.52 times less risky than Guangdong Marubi. It trades about 0.04 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.0 per unit of risk. If you would invest 390.00 in Jiangsu Financial Leasing on October 16, 2024 and sell it today you would earn a total of 108.00 from holding Jiangsu Financial Leasing or generate 27.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Guangdong Marubi Bio |
Jiangsu Financial and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Guangdong Marubi
The main advantage of trading using opposite Jiangsu Financial and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi's long position.| Jiangsu Financial vs. Vanfund Urban Investment | Jiangsu Financial vs. Hunan Investment Group | Jiangsu Financial vs. Jointo Energy Investment | Jiangsu Financial vs. Sichuan Fulin Transportation |
| Guangdong Marubi vs. Jiangsu Financial Leasing | Guangdong Marubi vs. Ningbo Tech Bank Co | Guangdong Marubi vs. Shanghai Ziyan Foods | Guangdong Marubi vs. HeNan Splendor Science |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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