Correlation Between Zhejiang Publishing and Jiangsu Financial
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By analyzing existing cross correlation between Zhejiang Publishing Media and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Zhejiang Publishing 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 Zhejiang Publishing with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Publishing and Jiangsu Financial.
Diversification Opportunities for Zhejiang Publishing and Jiangsu Financial
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zhejiang and Jiangsu is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Publishing Media 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 Zhejiang Publishing 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 Zhejiang Publishing Media 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 Zhejiang Publishing i.e., Zhejiang Publishing and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Zhejiang Publishing and Jiangsu Financial
Assuming the 90 days trading horizon Zhejiang Publishing Media is expected to under-perform the Jiangsu Financial. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Publishing Media is 1.18 times less risky than Jiangsu Financial. The stock trades about -0.18 of its potential returns per unit of risk. The Jiangsu Financial Leasing is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 514.00 in Jiangsu Financial Leasing on November 3, 2024 and sell it today you would earn a total of 14.00 from holding Jiangsu Financial Leasing or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Publishing Media vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Zhejiang Publishing Media |
| Jiangsu Financial Leasing |
Zhejiang Publishing and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Publishing and Jiangsu Financial
The main advantage of trading using opposite Zhejiang Publishing and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Publishing 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.| Zhejiang Publishing vs. Xiangpiaopiao Food Co | Zhejiang Publishing vs. Anji Foodstuff Co | Zhejiang Publishing vs. Anhui Transport Consulting | Zhejiang Publishing vs. Hubeiyichang Transportation Group |
| Jiangsu Financial vs. Industrial and Commercial | Jiangsu Financial vs. Agricultural Bank of | Jiangsu Financial vs. China Construction Bank | Jiangsu Financial vs. Bank of China |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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