Correlation Between China Everbright and Jiangsu Financial
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By analyzing existing cross correlation between China Everbright Bank and Jiangsu Financial Leasing, you can compare the effects of market volatilities on China Everbright 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 Everbright with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Everbright and Jiangsu Financial.
Diversification Opportunities for China Everbright and Jiangsu Financial
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Jiangsu is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding China Everbright Bank 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 Everbright 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 Everbright Bank 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 Everbright i.e., China Everbright and Jiangsu Financial go up and down completely randomly.
Pair Corralation between China Everbright and Jiangsu Financial
Assuming the 90 days trading horizon China Everbright Bank is expected to generate 0.89 times more return on investment than Jiangsu Financial. However, China Everbright Bank is 1.13 times less risky than Jiangsu Financial. It trades about 0.08 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about -0.02 per unit of risk. If you would invest 342.00 in China Everbright Bank on October 25, 2024 and sell it today you would earn a total of 23.00 from holding China Everbright Bank or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Everbright Bank vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| China Everbright Bank |
| Jiangsu Financial Leasing |
China Everbright and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Everbright and Jiangsu Financial
The main advantage of trading using opposite China Everbright and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Everbright 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 Everbright vs. Nanjing Putian Telecommunications | China Everbright vs. Everdisplay Optronics Shanghai | China Everbright vs. Dymatic Chemicals | China Everbright vs. Allwin Telecommunication Co |
| Jiangsu Financial vs. Jiangsu Jinling Sports | Jiangsu Financial vs. Kidswant Children Products | Jiangsu Financial vs. Shenzhen Zqgame | Jiangsu Financial vs. Xinjiang Baodi Mining |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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