Correlation Between Xilinmen Furniture and Jiangsu Financial
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By analyzing existing cross correlation between Xilinmen Furniture Co and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Xilinmen Furniture 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 Xilinmen Furniture with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilinmen Furniture and Jiangsu Financial.
Diversification Opportunities for Xilinmen Furniture and Jiangsu Financial
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xilinmen and Jiangsu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Xilinmen Furniture Co 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 Xilinmen Furniture 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 Xilinmen Furniture Co 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 Xilinmen Furniture i.e., Xilinmen Furniture and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Xilinmen Furniture and Jiangsu Financial
Assuming the 90 days trading horizon Xilinmen Furniture Co is expected to generate 1.39 times more return on investment than Jiangsu Financial. However, Xilinmen Furniture is 1.39 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 0.01 per unit of risk. If you would invest 1,811 in Xilinmen Furniture Co on September 4, 2024 and sell it today you would earn a total of 145.00 from holding Xilinmen Furniture Co or generate 8.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilinmen Furniture Co vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Xilinmen Furniture |
| Jiangsu Financial Leasing |
Xilinmen Furniture and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilinmen Furniture and Jiangsu Financial
The main advantage of trading using opposite Xilinmen Furniture and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilinmen Furniture 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.| Xilinmen Furniture vs. Industrial and Commercial | Xilinmen Furniture vs. Agricultural Bank of | Xilinmen Furniture vs. China Construction Bank | Xilinmen Furniture vs. Bank of China |
| Jiangsu Financial vs. China Petroleum Chemical | Jiangsu Financial vs. PetroChina Co Ltd | Jiangsu Financial vs. China State Construction | Jiangsu Financial vs. China Railway Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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