Correlation Between Jiangsu Financial and XinJiang GuoTong
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By analyzing existing cross correlation between Jiangsu Financial Leasing and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Jiangsu Financial and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and XinJiang GuoTong.
Diversification Opportunities for Jiangsu Financial and XinJiang GuoTong
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and XinJiang is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Jiangsu Financial and XinJiang GuoTong
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to under-perform the XinJiang GuoTong. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Financial Leasing is 3.49 times less risky than XinJiang GuoTong. The stock trades about -0.08 of its potential returns per unit of risk. The XinJiang GuoTong Pipeline is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 957.00 in XinJiang GuoTong Pipeline on December 11, 2024 and sell it today you would earn a total of 91.00 from holding XinJiang GuoTong Pipeline or generate 9.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Financial Leasing vs. XinJiang GuoTong Pipeline
Performance |
Timeline |
Jiangsu Financial Leasing |
XinJiang GuoTong Pipeline |
Jiangsu Financial and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Financial and XinJiang GuoTong
The main advantage of trading using opposite Jiangsu Financial and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.Jiangsu Financial vs. Ciwen Media Co | Jiangsu Financial vs. Shuhua Sports Co | Jiangsu Financial vs. Maxvision Technology Corp | Jiangsu Financial vs. Chengdu B ray Media |
XinJiang GuoTong vs. Shuhua Sports Co | XinJiang GuoTong vs. Anhui Jinhe Industrial | XinJiang GuoTong vs. Yoantion Industrial IncLtd | XinJiang GuoTong vs. Vats Liquor Chain |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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