Correlation Between China State and Jiangsu Yike
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By analyzing existing cross correlation between China State Construction and Jiangsu Yike Food, you can compare the effects of market volatilities on China State 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 State with a short position of Jiangsu Yike. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Jiangsu Yike.
Diversification Opportunities for China State and Jiangsu Yike
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Jiangsu is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction 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 State 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 State Construction 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 State i.e., China State and Jiangsu Yike go up and down completely randomly.
Pair Corralation between China State and Jiangsu Yike
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Jiangsu Yike. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 1.97 times less risky than Jiangsu Yike. The stock trades about -0.01 of its potential returns per unit of risk. The Jiangsu Yike Food is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,163 in Jiangsu Yike Food on September 1, 2024 and sell it today you would earn a total of 206.00 from holding Jiangsu Yike Food or generate 17.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Jiangsu Yike Food
Performance |
| Timeline |
| China State Construction |
| Jiangsu Yike Food |
China State and Jiangsu Yike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Jiangsu Yike
The main advantage of trading using opposite China State and Jiangsu Yike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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 State vs. Hunan Investment Group | China State vs. Huaibei Mining Holdings | China State vs. Metro Investment Development | China State vs. Postal Savings Bank |
| Jiangsu Yike vs. Ming Yang Smart | Jiangsu Yike vs. 159681 | Jiangsu Yike vs. 159005 | Jiangsu Yike vs. Loctek Ergonomic Technology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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