Correlation Between Allwin Telecommunicatio and China Construction
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By analyzing existing cross correlation between Allwin Telecommunication Co and China Construction Bank, you can compare the effects of market volatilities on Allwin Telecommunicatio 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 Allwin Telecommunicatio with a short position of China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allwin Telecommunicatio and China Construction.
Diversification Opportunities for Allwin Telecommunicatio and China Construction
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allwin and China is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Allwin Telecommunication 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 Allwin Telecommunicatio 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 Allwin Telecommunication 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 Allwin Telecommunicatio i.e., Allwin Telecommunicatio and China Construction go up and down completely randomly.
Pair Corralation between Allwin Telecommunicatio and China Construction
Assuming the 90 days trading horizon Allwin Telecommunication Co is expected to generate 4.98 times more return on investment than China Construction. However, Allwin Telecommunicatio is 4.98 times more volatile than China Construction Bank. It trades about 0.2 of its potential returns per unit of risk. China Construction Bank is currently generating about 0.27 per unit of risk. If you would invest 654.00 in Allwin Telecommunication Co on September 14, 2024 and sell it today you would earn a total of 130.00 from holding Allwin Telecommunication Co or generate 19.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allwin Telecommunication Co vs. China Construction Bank
Performance |
| Timeline |
| Allwin Telecommunicatio |
| China Construction Bank |
Allwin Telecommunicatio and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allwin Telecommunicatio and China Construction
The main advantage of trading using opposite Allwin Telecommunicatio and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allwin Telecommunicatio 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.| Allwin Telecommunicatio vs. Industrial and Commercial | Allwin Telecommunicatio vs. China Construction Bank | Allwin Telecommunicatio vs. Bank of China | Allwin Telecommunicatio vs. Agricultural Bank of |
| China Construction vs. Tongyu Communication | China Construction vs. Zhongtong Guomai Communication | China Construction vs. Changchun Faway Automobile | China Construction vs. Allwin Telecommunication 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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