Correlation Between China Railway and JS Corrugating
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By analyzing existing cross correlation between China Railway Construction and JS Corrugating Machinery, you can compare the effects of market volatilities on China Railway and JS Corrugating 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 Railway with a short position of JS Corrugating. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and JS Corrugating.
Diversification Opportunities for China Railway and JS Corrugating
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and 000821 is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Construction and JS Corrugating Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Corrugating Machinery and China Railway 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 Railway Construction are associated (or correlated) with JS Corrugating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Corrugating Machinery has no effect on the direction of China Railway i.e., China Railway and JS Corrugating go up and down completely randomly.
Pair Corralation between China Railway and JS Corrugating
Assuming the 90 days trading horizon China Railway is expected to generate 1.16 times less return on investment than JS Corrugating. But when comparing it to its historical volatility, China Railway Construction is 1.65 times less risky than JS Corrugating. It trades about 0.12 of its potential returns per unit of risk. JS Corrugating Machinery is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,243 in JS Corrugating Machinery on August 31, 2024 and sell it today you would earn a total of 155.00 from holding JS Corrugating Machinery or generate 12.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Construction vs. JS Corrugating Machinery
Performance |
| Timeline |
| China Railway Constr |
| JS Corrugating Machinery |
China Railway and JS Corrugating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and JS Corrugating
The main advantage of trading using opposite China Railway and JS Corrugating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, JS Corrugating 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 JS Corrugating will offset losses from the drop in JS Corrugating's long position.| China Railway vs. China World Trade | China Railway vs. CSSC Offshore Marine | China Railway vs. Oriental Times Media | China Railway vs. China Publishing Media |
| JS Corrugating vs. Cultural Investment Holdings | JS Corrugating vs. Gome Telecom Equipment | JS Corrugating vs. Bus Online Co | JS Corrugating vs. Holitech Technology 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.
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