Correlation Between Henan Shuanghui and China Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Henan Shuanghui Investment and China Construction Bank, you can compare the effects of market volatilities on Henan Shuanghui and China Construction 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 Henan Shuanghui with a short position of China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and China Construction.
Diversification Opportunities for Henan Shuanghui and China Construction
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Henan and China is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and China Construction Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Construction Bank and Henan Shuanghui 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 Henan Shuanghui Investment are associated (or correlated) with China Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Construction Bank has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and China Construction go up and down completely randomly.
Pair Corralation between Henan Shuanghui and China Construction
Assuming the 90 days trading horizon Henan Shuanghui is expected to generate 3.47 times less return on investment than China Construction. In addition to that, Henan Shuanghui is 1.01 times more volatile than China Construction Bank. It trades about 0.02 of its total potential returns per unit of risk. China Construction Bank is currently generating about 0.08 per unit of volatility. If you would invest 527.00 in China Construction Bank on September 4, 2024 and sell it today you would earn a total of 280.00 from holding China Construction Bank or generate 53.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. China Construction Bank
Performance |
| Timeline |
| Henan Shuanghui Inve |
| China Construction Bank |
Henan Shuanghui and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and China Construction
The main advantage of trading using opposite Henan Shuanghui and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, China Construction 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 China Construction will offset losses from the drop in China Construction's long position.| Henan Shuanghui vs. Poly Real Estate | Henan Shuanghui vs. China Vanke Co | Henan Shuanghui vs. China Merchants Shekou | Henan Shuanghui vs. Huafa Industrial Co |
| China Construction vs. Henan Shuanghui Investment | China Construction vs. Servyou Software Group | China Construction vs. Hunan Investment Group | China Construction vs. Harbin Hatou Investment |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |