Correlation Between Jiangsu Financial and Chengdu Xingrong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Financial Leasing and Chengdu Xingrong Investment, you can compare the effects of market volatilities on Jiangsu Financial and Chengdu Xingrong 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 Financial with a short position of Chengdu Xingrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Chengdu Xingrong.
Diversification Opportunities for Jiangsu Financial and Chengdu Xingrong
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Chengdu is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Chengdu Xingrong Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xingrong Inv and Jiangsu Financial 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 Financial Leasing are associated (or correlated) with Chengdu Xingrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xingrong Inv has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Chengdu Xingrong go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Chengdu Xingrong
Assuming the 90 days trading horizon Jiangsu Financial is expected to generate 1.16 times less return on investment than Chengdu Xingrong. But when comparing it to its historical volatility, Jiangsu Financial Leasing is 1.36 times less risky than Chengdu Xingrong. It trades about 0.26 of its potential returns per unit of risk. Chengdu Xingrong Investment is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 715.00 in Chengdu Xingrong Investment on September 26, 2024 and sell it today you would earn a total of 40.00 from holding Chengdu Xingrong Investment or generate 5.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Financial Leasing vs. Chengdu Xingrong Investment
Performance |
Timeline |
Jiangsu Financial Leasing |
Chengdu Xingrong Inv |
Jiangsu Financial and Chengdu Xingrong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Financial and Chengdu Xingrong
The main advantage of trading using opposite Jiangsu Financial and Chengdu Xingrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Chengdu Xingrong 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 Chengdu Xingrong will offset losses from the drop in Chengdu Xingrong's long position.Jiangsu Financial vs. Zijin Mining Group | Jiangsu Financial vs. Lier Chemical Co | Jiangsu Financial vs. Tianjin Silvery Dragon | Jiangsu Financial vs. Jiangxi Naipu Mining |
Chengdu Xingrong vs. BeiGene | Chengdu Xingrong vs. Kweichow Moutai Co | Chengdu Xingrong vs. Beijing Roborock Technology | Chengdu Xingrong vs. G bits Network Technology |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |