Correlation Between Shanghai Newtouch and Jiangsu Financial
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By analyzing existing cross correlation between Shanghai Newtouch Software and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Shanghai Newtouch 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 Shanghai Newtouch with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Newtouch and Jiangsu Financial.
Diversification Opportunities for Shanghai Newtouch and Jiangsu Financial
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and Jiangsu is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Newtouch Software 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 Shanghai Newtouch 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 Shanghai Newtouch Software 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 Shanghai Newtouch i.e., Shanghai Newtouch and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Shanghai Newtouch and Jiangsu Financial
Assuming the 90 days trading horizon Shanghai Newtouch Software is expected to generate 3.0 times more return on investment than Jiangsu Financial. However, Shanghai Newtouch is 3.0 times more volatile than Jiangsu Financial Leasing. It trades about 0.02 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.0 per unit of risk. If you would invest 1,513 in Shanghai Newtouch Software on October 26, 2024 and sell it today you would lose (9.00) from holding Shanghai Newtouch Software or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Newtouch Software vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Shanghai Newtouch |
| Jiangsu Financial Leasing |
Shanghai Newtouch and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Newtouch and Jiangsu Financial
The main advantage of trading using opposite Shanghai Newtouch and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Newtouch 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.| Shanghai Newtouch vs. Industrial and Commercial | Shanghai Newtouch vs. Agricultural Bank of | Shanghai Newtouch vs. China Construction Bank | Shanghai Newtouch vs. Bank of China |
| Jiangsu Financial vs. Cloud Live Technology | Jiangsu Financial vs. Nanjing Putian Telecommunications | Jiangsu Financial vs. Shenzhen Coship Electronics | Jiangsu Financial vs. Shenzhen Hifuture Electric |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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