Correlation Between China State and Jiangsu Yueda
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By analyzing existing cross correlation between China State Construction and Jiangsu Yueda Investment, you can compare the effects of market volatilities on China State 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 China State with a short position of Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Jiangsu Yueda.
Diversification Opportunities for China State and Jiangsu Yueda
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Jiangsu is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction 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 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 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 China State i.e., China State and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between China State and Jiangsu Yueda
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Jiangsu Yueda. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 1.18 times less risky than Jiangsu Yueda. The stock trades about -0.11 of its potential returns per unit of risk. The Jiangsu Yueda Investment is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 428.00 in Jiangsu Yueda Investment on November 27, 2024 and sell it today you would earn a total of 20.00 from holding Jiangsu Yueda Investment or generate 4.67% 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 Yueda Investment
Performance |
| Timeline |
| China State Construction |
| Jiangsu Yueda Investment |
China State and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Jiangsu Yueda
The main advantage of trading using opposite China State and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. TianJin 712 Communication | China State vs. INKON Life Technology | China State vs. Juneyao Airlines | China State vs. Elec Tech International Co |
| Jiangsu Yueda vs. Ningbo MedicalSystem Biotechnology | Jiangsu Yueda vs. BTG Hotels Group | Jiangsu Yueda vs. Sichuan Hebang Biotechnology | Jiangsu Yueda vs. Guangzhou Dongfang Hotel |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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