Correlation Between Zhejiang Construction and Jiangsu Yueda
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Construction Investment and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Zhejiang Construction and Jiangsu Yueda 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 Zhejiang Construction with a short position of Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Construction and Jiangsu Yueda.
Diversification Opportunities for Zhejiang Construction and Jiangsu Yueda
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Jiangsu is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Construction Investme and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment and Zhejiang 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 Zhejiang Construction Investment are associated (or correlated) with Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Zhejiang Construction i.e., Zhejiang Construction and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Zhejiang Construction and Jiangsu Yueda
Assuming the 90 days trading horizon Zhejiang Construction Investment is expected to under-perform the Jiangsu Yueda. In addition to that, Zhejiang Construction is 1.06 times more volatile than Jiangsu Yueda Investment. It trades about -0.37 of its total potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about -0.07 per unit of volatility. If you would invest 450.00 in Jiangsu Yueda Investment on October 25, 2024 and sell it today you would lose (13.00) from holding Jiangsu Yueda Investment or give up 2.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Construction Investme vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Zhejiang Construction |
| Jiangsu Yueda Investment |
Zhejiang Construction and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Construction and Jiangsu Yueda
The main advantage of trading using opposite Zhejiang Construction and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Construction position performs unexpectedly, Jiangsu Yueda 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 Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Zhejiang Construction vs. Dareway Software Co | Zhejiang Construction vs. Impulse Qingdao Health | Zhejiang Construction vs. Hangzhou Pinming Software | Zhejiang Construction vs. Youngy Health Co |
| Jiangsu Yueda vs. Kweichow Moutai Co | Jiangsu Yueda vs. Contemporary Amperex Technology | Jiangsu Yueda vs. Beijing Roborock Technology | Jiangsu Yueda vs. BYD Co Ltd |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |