Correlation Between China Construction and Jiangsu Phoenix
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By analyzing existing cross correlation between China Construction Bank and Jiangsu Phoenix Publishing, you can compare the effects of market volatilities on China Construction and Jiangsu Phoenix 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 Jiangsu Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Jiangsu Phoenix.
Diversification Opportunities for China Construction and Jiangsu Phoenix
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Jiangsu is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Jiangsu Phoenix Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Phoenix Publ 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 Jiangsu Phoenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Phoenix Publ has no effect on the direction of China Construction i.e., China Construction and Jiangsu Phoenix go up and down completely randomly.
Pair Corralation between China Construction and Jiangsu Phoenix
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.72 times more return on investment than Jiangsu Phoenix. However, China Construction Bank is 1.39 times less risky than Jiangsu Phoenix. It trades about 0.08 of its potential returns per unit of risk. Jiangsu Phoenix Publishing is currently generating about 0.01 per unit of risk. If you would invest 753.00 in China Construction Bank on November 28, 2024 and sell it today you would earn a total of 97.00 from holding China Construction Bank or generate 12.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Jiangsu Phoenix Publishing
Performance |
| Timeline |
| China Construction Bank |
| Jiangsu Phoenix Publ |
China Construction and Jiangsu Phoenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Jiangsu Phoenix
The main advantage of trading using opposite China Construction and Jiangsu Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Jiangsu Phoenix 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 Jiangsu Phoenix will offset losses from the drop in Jiangsu Phoenix's long position.| China Construction vs. Nexchip Semiconductor Corp | China Construction vs. Giantec Semiconductor Corp | China Construction vs. NBTM New Materials | China Construction vs. GigaDevice SemiconductorBeiji |
| Jiangsu Phoenix vs. Quectel Wireless Solutions | Jiangsu Phoenix vs. iSoftStone Information Technology | Jiangsu Phoenix vs. Wintao Communications Co | Jiangsu Phoenix vs. Eastern Air Logistics |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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