Correlation Between Corning Incorporated and Jiangsu Expressway
Can any of the company-specific risk be diversified away by investing in both Corning Incorporated 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 Corning Incorporated and Jiangsu Expressway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corning Incorporated and Jiangsu Expressway Co, you can compare the effects of market volatilities on Corning Incorporated 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 Corning Incorporated with a short position of Jiangsu Expressway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corning Incorporated and Jiangsu Expressway.
Diversification Opportunities for Corning Incorporated and Jiangsu Expressway
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Corning and Jiangsu is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Corning Incorporated and Jiangsu Expressway Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Expressway and Corning Incorporated 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 Corning Incorporated 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 Corning Incorporated i.e., Corning Incorporated and Jiangsu Expressway go up and down completely randomly.
Pair Corralation between Corning Incorporated and Jiangsu Expressway
Considering the 90-day investment horizon Corning Incorporated is expected to generate 0.51 times more return on investment than Jiangsu Expressway. However, Corning Incorporated is 1.94 times less risky than Jiangsu Expressway. It trades about 0.22 of its potential returns per unit of risk. Jiangsu Expressway Co is currently generating about 0.01 per unit of risk. If you would invest 4,750 in Corning Incorporated on October 22, 2024 and sell it today you would earn a total of 234.00 from holding Corning Incorporated or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corning Incorporated vs. Jiangsu Expressway Co
Performance |
| Timeline |
| Corning Incorporated |
| Jiangsu Expressway |
Corning Incorporated and Jiangsu Expressway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corning Incorporated and Jiangsu Expressway
The main advantage of trading using opposite Corning Incorporated and Jiangsu Expressway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corning Incorporated 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.| Corning Incorporated vs. OSI Systems | Corning Incorporated vs. Fabrinet | Corning Incorporated vs. Jabil Circuit | Corning Incorporated vs. Vicor |
| Jiangsu Expressway vs. Canlan Ice Sports | Jiangsu Expressway vs. Enersys | Jiangsu Expressway vs. Titan Machinery | Jiangsu Expressway vs. Genuine Parts 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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