Correlation Between By Health and China Construction
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By analyzing existing cross correlation between By health and China Construction Bank, you can compare the effects of market volatilities on By Health 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 By Health with a short position of China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of By Health and China Construction.
Diversification Opportunities for By Health and China Construction
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 300146 and China is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding By health 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 By Health 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 By health 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 By Health i.e., By Health and China Construction go up and down completely randomly.
Pair Corralation between By Health and China Construction
Assuming the 90 days trading horizon By health is expected to under-perform the China Construction. In addition to that, By Health is 1.7 times more volatile than China Construction Bank. It trades about -0.04 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 522.00 in China Construction Bank on September 5, 2024 and sell it today you would earn a total of 285.00 from holding China Construction Bank or generate 54.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
By health vs. China Construction Bank
Performance |
| Timeline |
| By health |
| China Construction Bank |
By Health and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with By Health and China Construction
The main advantage of trading using opposite By Health and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if By Health 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.| By Health vs. CIMC Vehicles Co | By Health vs. Changchun Faway Automobile | By Health vs. Hubei Xingfa Chemicals | By Health vs. Quectel Wireless Solutions |
| China Construction vs. Beijing Sanyuan Foods | China Construction vs. By health | China Construction vs. Everjoy Health Group | China Construction vs. Shandong Huifa Foodstuff |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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