Correlation Between Jiangsu Financial and Guobo Electronics
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Guobo Electronics Co, you can compare the effects of market volatilities on Jiangsu Financial and Guobo Electronics 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 Guobo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Guobo Electronics.
Diversification Opportunities for Jiangsu Financial and Guobo Electronics
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Guobo is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Guobo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guobo Electronics 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 Guobo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guobo Electronics has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Guobo Electronics go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Guobo Electronics
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.6 times more return on investment than Guobo Electronics. However, Jiangsu Financial Leasing is 1.67 times less risky than Guobo Electronics. It trades about -0.01 of its potential returns per unit of risk. Guobo Electronics Co is currently generating about -0.06 per unit of risk. If you would invest 508.00 in Jiangsu Financial Leasing on October 17, 2024 and sell it today you would lose (2.00) from holding Jiangsu Financial Leasing or give up 0.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Guobo Electronics Co
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Guobo Electronics |
Jiangsu Financial and Guobo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Guobo Electronics
The main advantage of trading using opposite Jiangsu Financial and Guobo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Guobo Electronics 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 Guobo Electronics will offset losses from the drop in Guobo Electronics' long position.| Jiangsu Financial vs. Leyard Optoelectronic | Jiangsu Financial vs. Sihui Fuji Electronics | Jiangsu Financial vs. Jinlong Machinery Electronic | Jiangsu Financial vs. HaiXin Foods Co |
| Guobo Electronics vs. Hainan Haiqi Transportation | Guobo Electronics vs. Xinjiang Beixin RoadBridge | Guobo Electronics vs. Jiangsu Financial Leasing | Guobo Electronics vs. Anshan Senyuan Road |
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 Stocks Directory module to find actively traded stocks across global markets.
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