Correlation Between China Construction and Bank of Jiangsu
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and Bank of Jiangsu, you can compare the effects of market volatilities on China Construction and Bank of Jiangsu 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 Bank of Jiangsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Bank of Jiangsu.
Diversification Opportunities for China Construction and Bank of Jiangsu
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Bank is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Bank of Jiangsu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Jiangsu 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 Bank of Jiangsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Jiangsu has no effect on the direction of China Construction i.e., China Construction and Bank of Jiangsu go up and down completely randomly.
Pair Corralation between China Construction and Bank of Jiangsu
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.69 times more return on investment than Bank of Jiangsu. However, China Construction Bank is 1.46 times less risky than Bank of Jiangsu. It trades about 0.0 of its potential returns per unit of risk. Bank of Jiangsu is currently generating about -0.1 per unit of risk. If you would invest 808.00 in China Construction Bank on September 5, 2024 and sell it today you would lose (1.00) from holding China Construction Bank or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Bank of Jiangsu
Performance |
| Timeline |
| China Construction Bank |
| Bank of Jiangsu |
China Construction and Bank of Jiangsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Bank of Jiangsu
The main advantage of trading using opposite China Construction and Bank of Jiangsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Bank of Jiangsu 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 Bank of Jiangsu will offset losses from the drop in Bank of Jiangsu'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 |
| Bank of Jiangsu vs. Heilongjiang Transport Development | Bank of Jiangsu vs. Shanghai Yaoji Playing | Bank of Jiangsu vs. Dareway Software Co | Bank of Jiangsu vs. Sportsoul Co Ltd |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |