Correlation Between China World and Jiangsu Yike
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By analyzing existing cross correlation between China World Trade and Jiangsu Yike Food, you can compare the effects of market volatilities on China World and Jiangsu Yike 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 China World with a short position of Jiangsu Yike. Check out your portfolio center. Please also check ongoing floating volatility patterns of China World and Jiangsu Yike.
Diversification Opportunities for China World and Jiangsu Yike
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Jiangsu is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding China World Trade and Jiangsu Yike Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yike Food and China World 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 China World Trade are associated (or correlated) with Jiangsu Yike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yike Food has no effect on the direction of China World i.e., China World and Jiangsu Yike go up and down completely randomly.
Pair Corralation between China World and Jiangsu Yike
Assuming the 90 days trading horizon China World Trade is expected to generate 0.43 times more return on investment than Jiangsu Yike. However, China World Trade is 2.32 times less risky than Jiangsu Yike. It trades about 0.1 of its potential returns per unit of risk. Jiangsu Yike Food is currently generating about -0.25 per unit of risk. If you would invest 2,393 in China World Trade on October 24, 2024 and sell it today you would earn a total of 57.00 from holding China World Trade or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China World Trade vs. Jiangsu Yike Food
Performance |
| Timeline |
| China World Trade |
| Jiangsu Yike Food |
China World and Jiangsu Yike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China World and Jiangsu Yike
The main advantage of trading using opposite China World and Jiangsu Yike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China World position performs unexpectedly, Jiangsu Yike 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 Yike will offset losses from the drop in Jiangsu Yike's long position.| China World vs. Xinjiang Baodi Mining | China World vs. Hubeiyichang Transportation Group | China World vs. Guocheng Mining Co | China World vs. Shenyang Blue Silver |
| Jiangsu Yike vs. Jiangsu Yueda Investment | Jiangsu Yike vs. China Publishing Media | Jiangsu Yike vs. Heilongjiang Publishing Media | Jiangsu Yike vs. Hengdian Entertainment Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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