Correlation Between Jiangsu Yueda and Zhejiang Construction
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Zhejiang Construction Investment, you can compare the effects of market volatilities on Jiangsu Yueda and Zhejiang Construction 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 Yueda with a short position of Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Zhejiang Construction.
Diversification Opportunities for Jiangsu Yueda and Zhejiang Construction
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Zhejiang is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction and Jiangsu Yueda 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 Yueda Investment are associated (or correlated) with Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Jiangsu Yueda i.e., Jiangsu Yueda and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Zhejiang Construction
Assuming the 90 days trading horizon Jiangsu Yueda Investment is expected to generate 0.95 times more return on investment than Zhejiang Construction. However, Jiangsu Yueda Investment is 1.06 times less risky than Zhejiang Construction. It trades about -0.07 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about -0.37 per unit of risk. 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 |
Jiangsu Yueda Investment vs. Zhejiang Construction Investme
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Zhejiang Construction |
Jiangsu Yueda and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Zhejiang Construction
The main advantage of trading using opposite Jiangsu Yueda and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's long position.| Jiangsu Yueda vs. Kweichow Moutai Co | Jiangsu Yueda vs. Contemporary Amperex Technology | Jiangsu Yueda vs. Beijing Roborock Technology | Jiangsu Yueda vs. BYD Co Ltd |
| Zhejiang Construction vs. Dareway Software Co | Zhejiang Construction vs. Impulse Qingdao Health | Zhejiang Construction vs. Hangzhou Pinming Software | Zhejiang Construction vs. Youngy Health 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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