Correlation Between China Building and Jiangsu Seagull
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Building Material and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on China Building and Jiangsu Seagull 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 Building with a short position of Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Building and Jiangsu Seagull.
Diversification Opportunities for China Building and Jiangsu Seagull
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Jiangsu is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding China Building Material and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling and China Building 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 Building Material are associated (or correlated) with Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of China Building i.e., China Building and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between China Building and Jiangsu Seagull
Assuming the 90 days trading horizon China Building Material is expected to under-perform the Jiangsu Seagull. But the stock apears to be less risky and, when comparing its historical volatility, China Building Material is 3.62 times less risky than Jiangsu Seagull. The stock trades about -0.21 of its potential returns per unit of risk. The Jiangsu Seagull Cooling is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,068 in Jiangsu Seagull Cooling on October 28, 2024 and sell it today you would earn a total of 154.00 from holding Jiangsu Seagull Cooling or generate 14.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Building Material vs. Jiangsu Seagull Cooling
Performance |
| Timeline |
| China Building Material |
| Jiangsu Seagull Cooling |
China Building and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Building and Jiangsu Seagull
The main advantage of trading using opposite China Building and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Building position performs unexpectedly, Jiangsu Seagull 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 Seagull will offset losses from the drop in Jiangsu Seagull's long position.| China Building vs. Tianjin Hi Tech Development | China Building vs. Bank of Communications | China Building vs. Sichuan Jinshi Technology | China Building vs. China Satellite Communications |
| Jiangsu Seagull vs. China Asset Management | Jiangsu Seagull vs. Success Electronics | Jiangsu Seagull vs. Zhonghang Electronic Measuring | Jiangsu Seagull vs. TongFu Microelectronics Co |
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.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |