Correlation Between Jiangsu Financial and Luyin Investment
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Luyin Investment Group, you can compare the effects of market volatilities on Jiangsu Financial and Luyin Investment 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 Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Luyin Investment.
Diversification Opportunities for Jiangsu Financial and Luyin Investment
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Luyin is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment 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 Luyin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luyin Investment has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Luyin Investment go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Luyin Investment
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.8 times more return on investment than Luyin Investment. However, Jiangsu Financial Leasing is 1.26 times less risky than Luyin Investment. It trades about 0.05 of its potential returns per unit of risk. Luyin Investment Group is currently generating about -0.01 per unit of risk. If you would invest 406.00 in Jiangsu Financial Leasing on September 30, 2024 and sell it today you would earn a total of 115.00 from holding Jiangsu Financial Leasing or generate 28.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Financial Leasing vs. Luyin Investment Group
Performance |
Timeline |
Jiangsu Financial Leasing |
Luyin Investment |
Jiangsu Financial and Luyin Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Financial and Luyin Investment
The main advantage of trading using opposite Jiangsu Financial and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Luyin Investment 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 Luyin Investment will offset losses from the drop in Luyin Investment's long position.Jiangsu Financial vs. Ming Yang Smart | Jiangsu Financial vs. 159681 | Jiangsu Financial vs. 159005 | Jiangsu Financial vs. Loctek Ergonomic Technology |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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