Correlation Between Rogers and Jiangsu Expressway

Can any of the company-specific risk be diversified away by investing in both Rogers and Jiangsu Expressway 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 Rogers and Jiangsu Expressway into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Rogers and Jiangsu Expressway Co, you can compare the effects of market volatilities on Rogers and Jiangsu Expressway 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 Rogers with a short position of Jiangsu Expressway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rogers and Jiangsu Expressway.

Diversification Opportunities for Rogers and Jiangsu Expressway

-0.45

Correlation Coefficient

Rogers  Jiangsu Expressway

Very good diversification

The 3 months correlation between Rogers and Jiangsu is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Rogers and Jiangsu Expressway Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Expressway and Rogers 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 Rogers are associated (or correlated) with Jiangsu Expressway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Expressway has no effect on the direction of Rogers i.e., Rogers and Jiangsu Expressway go up and down completely randomly.

Pair Corralation between Rogers and Jiangsu Expressway

Considering the 90-day investment horizon Rogers is expected to under-perform the Jiangsu Expressway. But the stock apears to be less risky and, when comparing its historical volatility, Rogers is 1.21 times less risky than Jiangsu Expressway. The stock trades about -0.21 of its potential returns per unit of risk. The Jiangsu Expressway Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  2,125  in Jiangsu Expressway Co on December 21, 2024 and sell it today you would earn a total of  98.00  from holding Jiangsu Expressway Co or generate 4.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Rogers  vs.  Jiangsu Expressway Co

Rogers

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rogers has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Jiangsu Expressway

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jiangsu Expressway Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Jiangsu Expressway may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Rogers and Jiangsu Expressway

The main advantage of trading using opposite Rogers and Jiangsu Expressway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rogers position performs unexpectedly, Jiangsu Expressway 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 Expressway will offset losses from the drop in Jiangsu Expressway's long position.

The idea behind Rogers and Jiangsu Expressway Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.