Correlation Between China State and Jiangsu Financial
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By analyzing existing cross correlation between China State Construction and Jiangsu Financial Leasing, you can compare the effects of market volatilities on China State and Jiangsu Financial 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 China State with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Jiangsu Financial.
Diversification Opportunities for China State and Jiangsu Financial
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Jiangsu is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Jiangsu Financial Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Financial Leasing and China State 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 China State Construction are associated (or correlated) with Jiangsu Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Financial Leasing has no effect on the direction of China State i.e., China State and Jiangsu Financial go up and down completely randomly.
Pair Corralation between China State and Jiangsu Financial
Assuming the 90 days trading horizon China State Construction is expected to generate 1.21 times more return on investment than Jiangsu Financial. However, China State is 1.21 times more volatile than Jiangsu Financial Leasing. It trades about -0.03 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about -0.08 per unit of risk. If you would invest 619.00 in China State Construction on September 12, 2024 and sell it today you would lose (7.00) from holding China State Construction or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| China State Construction |
| Jiangsu Financial Leasing |
China State and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Jiangsu Financial
The main advantage of trading using opposite China State and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Jiangsu Financial 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 Jiangsu Financial will offset losses from the drop in Jiangsu Financial's long position.| China State vs. Xilinmen Furniture Co | China State vs. Nanjing OLO Home | China State vs. Iat Automobile Technology | China State vs. Fiberhome Telecommunication Technologies |
| Jiangsu Financial vs. China Petroleum Chemical | Jiangsu Financial vs. PetroChina Co Ltd | Jiangsu Financial vs. China Mobile Limited | Jiangsu Financial vs. Industrial and Commercial |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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