Correlation Between Tianjin Silvery and Jiangsu Financial
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By analyzing existing cross correlation between Tianjin Silvery Dragon and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Tianjin Silvery and Jiangsu Financial 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 Tianjin Silvery with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and Jiangsu Financial.
Diversification Opportunities for Tianjin Silvery and Jiangsu Financial
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianjin and Jiangsu is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon and Jiangsu Financial Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Financial Leasing and Tianjin Silvery 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 Tianjin Silvery Dragon are associated (or correlated) with Jiangsu Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Financial Leasing has no effect on the direction of Tianjin Silvery i.e., Tianjin Silvery and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Tianjin Silvery and Jiangsu Financial
Assuming the 90 days trading horizon Tianjin Silvery Dragon is expected to generate 1.51 times more return on investment than Jiangsu Financial. However, Tianjin Silvery is 1.51 times more volatile than Jiangsu Financial Leasing. It trades about 0.19 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.04 per unit of risk. If you would invest 450.00 in Tianjin Silvery Dragon on September 26, 2024 and sell it today you would earn a total of 186.00 from holding Tianjin Silvery Dragon or generate 41.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tianjin Silvery Dragon vs. Jiangsu Financial Leasing
Performance |
Timeline |
Tianjin Silvery Dragon |
Jiangsu Financial Leasing |
Tianjin Silvery and Jiangsu Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianjin Silvery and Jiangsu Financial
The main advantage of trading using opposite Tianjin Silvery and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery position performs unexpectedly, Jiangsu Financial 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 Financial will offset losses from the drop in Jiangsu Financial's long position.Tianjin Silvery vs. Sportsoul Co Ltd | Tianjin Silvery vs. Holitech Technology Co | Tianjin Silvery vs. Hubei Forbon Technology | Tianjin Silvery vs. Shuhua Sports Co |
Jiangsu Financial vs. Zijin Mining Group | Jiangsu Financial vs. Lier Chemical Co | Jiangsu Financial vs. Tianjin Silvery Dragon | Jiangsu Financial vs. Jiangxi Naipu Mining |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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