Correlation Between Ferrovial and Jiangsu Expressway
Can any of the company-specific risk be diversified away by investing in both Ferrovial and Jiangsu Expressway at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ferrovial and Jiangsu Expressway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ferrovial SA and Jiangsu Expressway Co, you can compare the effects of market volatilities on Ferrovial and Jiangsu Expressway 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 Ferrovial with a short position of Jiangsu Expressway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ferrovial and Jiangsu Expressway.
Diversification Opportunities for Ferrovial and Jiangsu Expressway
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ferrovial and Jiangsu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ferrovial SA and Jiangsu Expressway Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Expressway and Ferrovial 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 Ferrovial SA are associated (or correlated) with Jiangsu Expressway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Expressway has no effect on the direction of Ferrovial i.e., Ferrovial and Jiangsu Expressway go up and down completely randomly.
Pair Corralation between Ferrovial and Jiangsu Expressway
Assuming the 90 days horizon Ferrovial is expected to generate 1.81 times less return on investment than Jiangsu Expressway. But when comparing it to its historical volatility, Ferrovial SA is 1.89 times less risky than Jiangsu Expressway. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Expressway Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,996 in Jiangsu Expressway Co on November 2, 2024 and sell it today you would earn a total of 154.00 from holding Jiangsu Expressway Co or generate 7.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.47% |
| Values | Daily Returns |
Ferrovial SA vs. Jiangsu Expressway Co
Performance |
| Timeline |
| Ferrovial SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jiangsu Expressway |
Ferrovial and Jiangsu Expressway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ferrovial and Jiangsu Expressway
The main advantage of trading using opposite Ferrovial and Jiangsu Expressway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ferrovial position performs unexpectedly, Jiangsu Expressway 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 Expressway will offset losses from the drop in Jiangsu Expressway's long position.| Ferrovial vs. Vinci SA ADR | Ferrovial vs. Geberit AG ADR | Ferrovial vs. Kone Oyj ADR | Ferrovial vs. Kuehne Nagel International |
| Jiangsu Expressway vs. Suntory Beverage Food | Jiangsu Expressway vs. Westrock Coffee | Jiangsu Expressway vs. Diageo PLC ADR | Jiangsu Expressway vs. Willamette Valley Vineyards |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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