Correlation Between China Construction and Jason Furniture
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By analyzing existing cross correlation between China Construction Bank and Jason Furniture, you can compare the effects of market volatilities on China Construction and Jason Furniture 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 Jason Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Jason Furniture.
Diversification Opportunities for China Construction and Jason Furniture
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Jason is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Jason Furniture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jason Furniture 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 Jason Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jason Furniture has no effect on the direction of China Construction i.e., China Construction and Jason Furniture go up and down completely randomly.
Pair Corralation between China Construction and Jason Furniture
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.52 times more return on investment than Jason Furniture. However, China Construction Bank is 1.93 times less risky than Jason Furniture. It trades about 0.09 of its potential returns per unit of risk. Jason Furniture is currently generating about -0.02 per unit of risk. If you would invest 533.00 in China Construction Bank on September 26, 2024 and sell it today you would earn a total of 345.00 from holding China Construction Bank or generate 64.73% 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. Jason Furniture
Performance |
| Timeline |
| China Construction Bank |
| Jason Furniture |
China Construction and Jason Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Jason Furniture
The main advantage of trading using opposite China Construction and Jason Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Jason Furniture 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 Jason Furniture will offset losses from the drop in Jason Furniture's long position.| China Construction vs. Industrial and Commercial | China Construction vs. Kweichow Moutai Co | China Construction vs. Agricultural Bank of | China Construction vs. China Mobile Limited |
| Jason Furniture vs. Agricultural Bank of | Jason Furniture vs. Industrial and Commercial | Jason Furniture vs. Bank of China | Jason Furniture 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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