Correlation Between Shantui Construction and JS Corrugating
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By analyzing existing cross correlation between Shantui Construction Machinery and JS Corrugating Machinery, you can compare the effects of market volatilities on Shantui Construction and JS Corrugating 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 Shantui Construction with a short position of JS Corrugating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantui Construction and JS Corrugating.
Diversification Opportunities for Shantui Construction and JS Corrugating
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shantui and 000821 is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shantui Construction Machinery and JS Corrugating Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Corrugating Machinery and Shantui Construction 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 Shantui Construction Machinery are associated (or correlated) with JS Corrugating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Corrugating Machinery has no effect on the direction of Shantui Construction i.e., Shantui Construction and JS Corrugating go up and down completely randomly.
Pair Corralation between Shantui Construction and JS Corrugating
Assuming the 90 days trading horizon Shantui Construction Machinery is expected to under-perform the JS Corrugating. But the stock apears to be less risky and, when comparing its historical volatility, Shantui Construction Machinery is 1.15 times less risky than JS Corrugating. The stock trades about -0.32 of its potential returns per unit of risk. The JS Corrugating Machinery is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 1,392 in JS Corrugating Machinery on September 28, 2024 and sell it today you would lose (90.00) from holding JS Corrugating Machinery or give up 6.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantui Construction Machinery vs. JS Corrugating Machinery
Performance |
| Timeline |
| Shantui Construction |
| JS Corrugating Machinery |
Shantui Construction and JS Corrugating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantui Construction and JS Corrugating
The main advantage of trading using opposite Shantui Construction and JS Corrugating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantui Construction position performs unexpectedly, JS Corrugating 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 JS Corrugating will offset losses from the drop in JS Corrugating's long position.| Shantui Construction vs. ZYF Lopsking Aluminum | Shantui Construction vs. Western Metal Materials | Shantui Construction vs. Healthcare Co | Shantui Construction vs. Anhui Transport Consulting |
| JS Corrugating vs. Bank of China | JS Corrugating vs. Kweichow Moutai Co | JS Corrugating vs. PetroChina Co Ltd | JS Corrugating vs. Bank of Communications |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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