Correlation Between China Construction and Joincare Pharmaceutical
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By analyzing existing cross correlation between China Construction Bank and Joincare Pharmaceutical Group, you can compare the effects of market volatilities on China Construction and Joincare Pharmaceutical 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 Joincare Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Joincare Pharmaceutical.
Diversification Opportunities for China Construction and Joincare Pharmaceutical
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Joincare is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Joincare Pharmaceutical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joincare Pharmaceutical 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 Joincare Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joincare Pharmaceutical has no effect on the direction of China Construction i.e., China Construction and Joincare Pharmaceutical go up and down completely randomly.
Pair Corralation between China Construction and Joincare Pharmaceutical
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.71 times more return on investment than Joincare Pharmaceutical. However, China Construction Bank is 1.42 times less risky than Joincare Pharmaceutical. It trades about 0.08 of its potential returns per unit of risk. Joincare Pharmaceutical Group is currently generating about 0.01 per unit of risk. If you would invest 522.00 in China Construction Bank on September 5, 2024 and sell it today you would earn a total of 285.00 from holding China Construction Bank or generate 54.6% 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. Joincare Pharmaceutical Group
Performance |
| Timeline |
| China Construction Bank |
| Joincare Pharmaceutical |
China Construction and Joincare Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Joincare Pharmaceutical
The main advantage of trading using opposite China Construction and Joincare Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Joincare Pharmaceutical 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 Joincare Pharmaceutical will offset losses from the drop in Joincare Pharmaceutical'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 |
| Joincare Pharmaceutical vs. Industrial and Commercial | Joincare Pharmaceutical vs. Agricultural Bank of | Joincare Pharmaceutical vs. China Construction Bank | Joincare Pharmaceutical 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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