Correlation Between Jiangsu Yanghe and China Railway
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and China Railway Construction, you can compare the effects of market volatilities on Jiangsu Yanghe and China Railway 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 Yanghe with a short position of China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and China Railway.
Diversification Opportunities for Jiangsu Yanghe and China Railway
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and China is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and China Railway Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Constr and Jiangsu Yanghe 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 Yanghe Brewery are associated (or correlated) with China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Constr has no effect on the direction of Jiangsu Yanghe i.e., Jiangsu Yanghe and China Railway go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and China Railway
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to generate 0.74 times more return on investment than China Railway. However, Jiangsu Yanghe Brewery is 1.35 times less risky than China Railway. It trades about -0.17 of its potential returns per unit of risk. China Railway Construction is currently generating about -0.3 per unit of risk. If you would invest 8,340 in Jiangsu Yanghe Brewery on October 23, 2024 and sell it today you would lose (305.00) from holding Jiangsu Yanghe Brewery or give up 3.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. China Railway Construction
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| China Railway Constr |
Jiangsu Yanghe and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and China Railway
The main advantage of trading using opposite Jiangsu Yanghe and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway's long position.| Jiangsu Yanghe vs. Chongqing Changan Automobile | Jiangsu Yanghe vs. Keeson Technology Corp | Jiangsu Yanghe vs. Zhongshan Public Utilities | Jiangsu Yanghe vs. Ping An Insurance |
| China Railway vs. Jiangsu Yanghe Brewery | China Railway vs. Eastroc Beverage Group | China Railway vs. Keda Clean Energy | China Railway vs. Hua Xia Bank |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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