Correlation Between Ningbo Fujia and Jiangsu Financial
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By analyzing existing cross correlation between Ningbo Fujia Industrial and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Ningbo Fujia 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 Ningbo Fujia with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and Jiangsu Financial.
Diversification Opportunities for Ningbo Fujia and Jiangsu Financial
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Jiangsu is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial 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 Ningbo Fujia 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 Ningbo Fujia Industrial 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 Ningbo Fujia i.e., Ningbo Fujia and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Ningbo Fujia and Jiangsu Financial
Assuming the 90 days trading horizon Ningbo Fujia Industrial is expected to generate 2.58 times more return on investment than Jiangsu Financial. However, Ningbo Fujia is 2.58 times more volatile than Jiangsu Financial Leasing. It trades about 0.04 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 1,421 in Ningbo Fujia Industrial on November 6, 2024 and sell it today you would earn a total of 54.00 from holding Ningbo Fujia Industrial or generate 3.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fujia Industrial vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| Jiangsu Financial Leasing |
Ningbo Fujia and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and Jiangsu Financial
The main advantage of trading using opposite Ningbo Fujia and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia 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.| Ningbo Fujia vs. Eastroc Beverage Group | Ningbo Fujia vs. Jiangsu Yanghe Brewery | Ningbo Fujia vs. Shandong Longquan Pipeline | Ningbo Fujia vs. Nanjing Putian Telecommunications |
| Jiangsu Financial vs. Gansu Huangtai Wine marketing | Jiangsu Financial vs. Shaanxi Energy Investment | Jiangsu Financial vs. Easyhome New Retail | Jiangsu Financial vs. Uroica Mining Safety |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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