Correlation Between FSPG Hi and China Construction
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By analyzing existing cross correlation between FSPG Hi Tech Co and China Construction Bank, you can compare the effects of market volatilities on FSPG Hi 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 FSPG Hi with a short position of China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of FSPG Hi and China Construction.
Diversification Opportunities for FSPG Hi and China Construction
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between FSPG and China is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding FSPG Hi Tech Co 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 FSPG Hi 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 FSPG Hi Tech Co 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 FSPG Hi i.e., FSPG Hi and China Construction go up and down completely randomly.
Pair Corralation between FSPG Hi and China Construction
Assuming the 90 days trading horizon FSPG Hi Tech Co is expected to under-perform the China Construction. In addition to that, FSPG Hi is 2.15 times more volatile than China Construction Bank. It trades about -0.32 of its total potential returns per unit of risk. China Construction Bank is currently generating about 0.07 per unit of volatility. If you would invest 830.00 in China Construction Bank on October 14, 2024 and sell it today you would earn a total of 15.00 from holding China Construction Bank or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FSPG Hi Tech Co vs. China Construction Bank
Performance |
| Timeline |
| FSPG Hi Tech |
| China Construction Bank |
FSPG Hi and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FSPG Hi and China Construction
The main advantage of trading using opposite FSPG Hi and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FSPG Hi 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.| FSPG Hi vs. Shanghai Broadband Technology | FSPG Hi vs. Guilin Seamild Foods | FSPG Hi vs. Jiangsu Broadcasting Cable | FSPG Hi vs. Zhengping RoadBridge Constr |
| China Construction vs. Shandong Sinoglory Health | China Construction vs. FSPG Hi Tech Co | China Construction vs. De Rucci Healthy | China Construction vs. Shanghai Shibei Hi Tech |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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