Correlation Between Jiangsu Expressway and Getlink SE
Can any of the company-specific risk be diversified away by investing in both Jiangsu Expressway and Getlink SE 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 Jiangsu Expressway and Getlink SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jiangsu Expressway and Getlink SE, you can compare the effects of market volatilities on Jiangsu Expressway and Getlink SE 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 Jiangsu Expressway with a short position of Getlink SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Expressway and Getlink SE.
Diversification Opportunities for Jiangsu Expressway and Getlink SE
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiangsu and Getlink is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Expressway and Getlink SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getlink SE and Jiangsu Expressway 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 Jiangsu Expressway are associated (or correlated) with Getlink SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getlink SE has no effect on the direction of Jiangsu Expressway i.e., Jiangsu Expressway and Getlink SE go up and down completely randomly.
Pair Corralation between Jiangsu Expressway and Getlink SE
Assuming the 90 days horizon Jiangsu Expressway is expected to under-perform the Getlink SE. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Expressway is 1.04 times less risky than Getlink SE. The stock trades about -0.11 of its potential returns per unit of risk. The Getlink SE is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,512 in Getlink SE on November 18, 2024 and sell it today you would earn a total of 70.00 from holding Getlink SE or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Expressway vs. Getlink SE
Performance |
| Timeline |
| Jiangsu Expressway |
| Getlink SE |
Jiangsu Expressway and Getlink SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Expressway and Getlink SE
The main advantage of trading using opposite Jiangsu Expressway and Getlink SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Expressway position performs unexpectedly, Getlink SE 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 Getlink SE will offset losses from the drop in Getlink SE's long position.| Jiangsu Expressway vs. PLAYTIKA HOLDING DL 01 | Jiangsu Expressway vs. InPlay Oil Corp | Jiangsu Expressway vs. Aristocrat Leisure Limited | Jiangsu Expressway vs. LG Display Co |
| Getlink SE vs. KENEDIX OFFICE INV | Getlink SE vs. PATTIES FOODS | Getlink SE vs. PREMIER FOODS | Getlink SE vs. US FOODS HOLDING |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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