Correlation Between China Construction and JS Corrugating
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By analyzing existing cross correlation between China Construction Bank and JS Corrugating Machinery, you can compare the effects of market volatilities on China Construction and JS Corrugating 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 JS Corrugating. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and JS Corrugating.
Diversification Opportunities for China Construction and JS Corrugating
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and 000821 is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and JS Corrugating Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Corrugating Machinery 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 JS Corrugating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Corrugating Machinery has no effect on the direction of China Construction i.e., China Construction and JS Corrugating go up and down completely randomly.
Pair Corralation between China Construction and JS Corrugating
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.18 times more return on investment than JS Corrugating. However, China Construction Bank is 5.41 times less risky than JS Corrugating. It trades about -0.09 of its potential returns per unit of risk. JS Corrugating Machinery is currently generating about -0.05 per unit of risk. If you would invest 801.00 in China Construction Bank on August 27, 2024 and sell it today you would lose (13.00) from holding China Construction Bank or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. JS Corrugating Machinery
Performance |
| Timeline |
| China Construction Bank |
| JS Corrugating Machinery |
China Construction and JS Corrugating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and JS Corrugating
The main advantage of trading using opposite China Construction and JS Corrugating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, JS Corrugating 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 JS Corrugating will offset losses from the drop in JS Corrugating's long position.| China Construction vs. Threes Company Media | China Construction vs. Omnijoi Media Corp | China Construction vs. Nanxing Furniture Machinery | China Construction vs. Qumei Furniture Group |
| JS Corrugating vs. Biwin Storage Technology | JS Corrugating vs. PetroChina Co Ltd | JS Corrugating vs. Industrial and Commercial | JS Corrugating vs. China Construction Bank |
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 CEOs Directory module to screen CEOs from public companies around the world.
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