Correlation Between China Construction and Sailun Jinyu
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By analyzing existing cross correlation between China Construction Bank and Sailun Jinyu Group, you can compare the effects of market volatilities on China Construction and Sailun Jinyu 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 Sailun Jinyu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Sailun Jinyu.
Diversification Opportunities for China Construction and Sailun Jinyu
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Sailun is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Sailun Jinyu Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sailun Jinyu Group 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 Sailun Jinyu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sailun Jinyu Group has no effect on the direction of China Construction i.e., China Construction and Sailun Jinyu go up and down completely randomly.
Pair Corralation between China Construction and Sailun Jinyu
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.6 times more return on investment than Sailun Jinyu. However, China Construction Bank is 1.66 times less risky than Sailun Jinyu. It trades about 0.09 of its potential returns per unit of risk. Sailun Jinyu Group is currently generating about 0.05 per unit of risk. If you would invest 529.00 in China Construction Bank on September 23, 2024 and sell it today you would earn a total of 319.00 from holding China Construction Bank or generate 60.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
China Construction Bank vs. Sailun Jinyu Group
Performance |
Timeline |
China Construction Bank |
Sailun Jinyu Group |
China Construction and Sailun Jinyu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Construction and Sailun Jinyu
The main advantage of trading using opposite China Construction and Sailun Jinyu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Sailun Jinyu 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 Sailun Jinyu will offset losses from the drop in Sailun Jinyu'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 |
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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 Stocks Directory module to find actively traded stocks across global markets.
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