Correlation Between Wonders Information and China Construction
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By analyzing existing cross correlation between Wonders Information and China Construction Bank, you can compare the effects of market volatilities on Wonders Information 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 Wonders Information with a short position of China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonders Information and China Construction.
Diversification Opportunities for Wonders Information and China Construction
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wonders and China is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Wonders Information 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 Wonders Information 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 Wonders Information 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 Wonders Information i.e., Wonders Information and China Construction go up and down completely randomly.
Pair Corralation between Wonders Information and China Construction
Assuming the 90 days trading horizon Wonders Information is expected to generate 3.32 times more return on investment than China Construction. However, Wonders Information is 3.32 times more volatile than China Construction Bank. It trades about 0.02 of its potential returns per unit of risk. China Construction Bank is currently generating about 0.08 per unit of risk. If you would invest 921.00 in Wonders Information on September 3, 2024 and sell it today you would earn a total of 22.00 from holding Wonders Information or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonders Information vs. China Construction Bank
Performance |
| Timeline |
| Wonders Information |
| China Construction Bank |
Wonders Information and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonders Information and China Construction
The main advantage of trading using opposite Wonders Information and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonders Information 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.| Wonders Information vs. Agricultural Bank of | Wonders Information vs. China Construction Bank | Wonders Information vs. Postal Savings Bank | Wonders Information vs. Bank of Communications |
| China Construction vs. DO Home Collection | China Construction vs. China National Software | China Construction vs. Guangdong Jingyi Metal | China Construction vs. Guocheng Mining 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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