Correlation Between Jiangsu Financial and Lutian Machinery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Financial Leasing and Lutian Machinery Co, you can compare the effects of market volatilities on Jiangsu Financial and Lutian 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 Lutian Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Lutian Machinery.
Diversification Opportunities for Jiangsu Financial and Lutian Machinery
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jiangsu and Lutian is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Lutian Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lutian 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 Lutian Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lutian Machinery has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Lutian Machinery go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Lutian Machinery
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.84 times more return on investment than Lutian Machinery. However, Jiangsu Financial Leasing is 1.19 times less risky than Lutian Machinery. It trades about 0.04 of its potential returns per unit of risk. Lutian Machinery Co is currently generating about -0.01 per unit of risk. If you would invest 398.00 in Jiangsu Financial Leasing on October 27, 2024 and sell it today you would earn a total of 129.00 from holding Jiangsu Financial Leasing or generate 32.41% 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. Lutian Machinery Co
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Lutian Machinery |
Jiangsu Financial and Lutian Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Lutian Machinery
The main advantage of trading using opposite Jiangsu Financial and Lutian Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Lutian 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 Lutian Machinery will offset losses from the drop in Lutian Machinery's long position.| Jiangsu Financial vs. Xinjiang Baodi Mining | Jiangsu Financial vs. Tonghua Grape Wine | Jiangsu Financial vs. Beingmate Baby Child | Jiangsu Financial vs. ZYF Lopsking Aluminum |
| Lutian Machinery vs. PetroChina Co Ltd | Lutian Machinery vs. Industrial and Commercial | Lutian Machinery vs. China Petroleum Chemical | Lutian 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| 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 | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |