Correlation Between Jiangsu Financial and Beijing YanDong
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Beijing YanDong MicroElectronic, you can compare the effects of market volatilities on Jiangsu Financial and Beijing YanDong 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 Beijing YanDong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Beijing YanDong.
Diversification Opportunities for Jiangsu Financial and Beijing YanDong
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and Beijing is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Beijing YanDong MicroElectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing YanDong Micr 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 Beijing YanDong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing YanDong Micr has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Beijing YanDong go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Beijing YanDong
Assuming the 90 days trading horizon Jiangsu Financial is expected to generate 1.81 times less return on investment than Beijing YanDong. But when comparing it to its historical volatility, Jiangsu Financial Leasing is 2.0 times less risky than Beijing YanDong. It trades about 0.03 of its potential returns per unit of risk. Beijing YanDong MicroElectronic is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,788 in Beijing YanDong MicroElectronic on October 16, 2024 and sell it today you would earn a total of 285.00 from holding Beijing YanDong MicroElectronic or generate 15.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Beijing YanDong MicroElectroni
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Beijing YanDong Micr |
Jiangsu Financial and Beijing YanDong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Beijing YanDong
The main advantage of trading using opposite Jiangsu Financial and Beijing YanDong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Beijing YanDong 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 Beijing YanDong will offset losses from the drop in Beijing YanDong's long position.| Jiangsu Financial vs. Guangzhou Seagull Kitchen | Jiangsu Financial vs. Anhui Deli Household | Jiangsu Financial vs. Anhui Gujing Distillery | Jiangsu Financial vs. Shanghai Jinfeng Wine |
| Beijing YanDong vs. GRG Banking Equipment | Beijing YanDong vs. Beijing Enlight Media | Beijing YanDong vs. JiShi Media Co | Beijing YanDong vs. Jiangsu Financial Leasing |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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