Correlation Between China Construction and Tjk Machinery
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By analyzing existing cross correlation between China Construction Bank and Tjk Machinery Tianjin, you can compare the effects of market volatilities on China Construction and Tjk Machinery 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 Tjk Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Tjk Machinery.
Diversification Opportunities for China Construction and Tjk Machinery
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Tjk is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Tjk Machinery Tianjin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tjk Machinery Tianjin 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 Tjk Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tjk Machinery Tianjin has no effect on the direction of China Construction i.e., China Construction and Tjk Machinery go up and down completely randomly.
Pair Corralation between China Construction and Tjk Machinery
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.32 times more return on investment than Tjk Machinery. However, China Construction Bank is 3.15 times less risky than Tjk Machinery. It trades about 0.07 of its potential returns per unit of risk. Tjk Machinery Tianjin is currently generating about 0.02 per unit of risk. If you would invest 623.00 in China Construction Bank on August 25, 2024 and sell it today you would earn a total of 161.00 from holding China Construction Bank or generate 25.84% 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. Tjk Machinery Tianjin
Performance |
| Timeline |
| China Construction Bank |
| Tjk Machinery Tianjin |
China Construction and Tjk Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Tjk Machinery
The main advantage of trading using opposite China Construction and Tjk Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Tjk Machinery 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 Tjk Machinery will offset losses from the drop in Tjk Machinery's long position.| China Construction vs. Zhengzhou Qianweiyangchu Food | China Construction vs. Panda Dairy Corp | China Construction vs. Youyou Foods Co | China Construction vs. Zhongyin Babi Food |
| Tjk Machinery vs. Biwin Storage Technology | Tjk Machinery vs. PetroChina Co Ltd | Tjk Machinery vs. Industrial and Commercial | Tjk Machinery 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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