Correlation Between China Construction and Jiugui Liquor
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By analyzing existing cross correlation between China Construction Bank and Jiugui Liquor Co, you can compare the effects of market volatilities on China Construction and Jiugui Liquor 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 Construction with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Jiugui Liquor.
Diversification Opportunities for China Construction and Jiugui Liquor
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Jiugui is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and China 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 China Construction Bank are associated (or correlated) with Jiugui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiugui Liquor has no effect on the direction of China Construction i.e., China Construction and Jiugui Liquor go up and down completely randomly.
Pair Corralation between China Construction and Jiugui Liquor
Assuming the 90 days trading horizon China Construction is expected to generate 11.11 times less return on investment than Jiugui Liquor. But when comparing it to its historical volatility, China Construction Bank is 3.76 times less risky than Jiugui Liquor. It trades about 0.07 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 5,172 in Jiugui Liquor Co on September 5, 2024 and sell it today you would earn a total of 821.00 from holding Jiugui Liquor Co or generate 15.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Jiugui Liquor Co
Performance |
| Timeline |
| China Construction Bank |
| Jiugui Liquor |
China Construction and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Jiugui Liquor
The main advantage of trading using opposite China Construction and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Jiugui Liquor 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 Jiugui Liquor will offset losses from the drop in Jiugui Liquor's long position.| China Construction vs. Beijing Sanyuan Foods | China Construction vs. By health | China Construction vs. Everjoy Health Group | China Construction vs. Shandong Huifa Foodstuff |
| Jiugui Liquor vs. Industrial and Commercial | Jiugui Liquor vs. Agricultural Bank of | Jiugui Liquor vs. China Construction Bank | Jiugui Liquor vs. Bank of China |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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