Correlation Between Jiangsu Financial and Piotech
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Piotech Inc A, you can compare the effects of market volatilities on Jiangsu Financial and Piotech 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 Piotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Piotech.
Diversification Opportunities for Jiangsu Financial and Piotech
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiangsu and Piotech is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Piotech Inc A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piotech Inc A 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 Piotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piotech Inc A has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Piotech go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Piotech
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.64 times more return on investment than Piotech. However, Jiangsu Financial Leasing is 1.57 times less risky than Piotech. It trades about -0.03 of its potential returns per unit of risk. Piotech Inc A is currently generating about -0.28 per unit of risk. If you would invest 520.00 in Jiangsu Financial Leasing on October 25, 2024 and sell it today you would lose (5.00) from holding Jiangsu Financial Leasing or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Piotech Inc A
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Piotech Inc A |
Jiangsu Financial and Piotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Piotech
The main advantage of trading using opposite Jiangsu Financial and Piotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Piotech 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 Piotech will offset losses from the drop in Piotech's long position.| Jiangsu Financial vs. Jiangsu Jinling Sports | Jiangsu Financial vs. Kidswant Children Products | Jiangsu Financial vs. Shenzhen Zqgame | Jiangsu Financial vs. Xinjiang Baodi Mining |
| Piotech vs. Dhc Software Co | Piotech vs. Qingdao Haier Biomedical | Piotech vs. Xiangyu Medical Co | Piotech vs. Eyebright Medical 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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