Correlation Between Guangdong Skychem and Jiangsu Financial
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By analyzing existing cross correlation between Guangdong Skychem Technology and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Guangdong Skychem 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 Guangdong Skychem with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Skychem and Jiangsu Financial.
Diversification Opportunities for Guangdong Skychem and Jiangsu Financial
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangdong and Jiangsu is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Skychem Technology 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 Guangdong Skychem 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 Guangdong Skychem Technology 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 Guangdong Skychem i.e., Guangdong Skychem and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Guangdong Skychem and Jiangsu Financial
Assuming the 90 days trading horizon Guangdong Skychem Technology is expected to under-perform the Jiangsu Financial. In addition to that, Guangdong Skychem is 3.02 times more volatile than Jiangsu Financial Leasing. It trades about -0.06 of its total potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.05 per unit of volatility. If you would invest 513.00 in Jiangsu Financial Leasing on October 18, 2024 and sell it today you would earn a total of 6.00 from holding Jiangsu Financial Leasing or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Skychem Technology vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Guangdong Skychem |
| Jiangsu Financial Leasing |
Guangdong Skychem and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Skychem and Jiangsu Financial
The main advantage of trading using opposite Guangdong Skychem and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Skychem 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.| Guangdong Skychem vs. Beijing Yanjing Brewery | Guangdong Skychem vs. Nanjing Putian Telecommunications | Guangdong Skychem vs. Ping An Insurance | Guangdong Skychem vs. TongFu Microelectronics Co |
| Jiangsu Financial vs. Leyard Optoelectronic | Jiangsu Financial vs. Sihui Fuji Electronics | Jiangsu Financial vs. Jinlong Machinery Electronic | Jiangsu Financial vs. HaiXin Foods Co |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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