Correlation Between CIMC Vehicles and China Construction
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By analyzing existing cross correlation between CIMC Vehicles Co and China Construction Bank, you can compare the effects of market volatilities on CIMC Vehicles 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 CIMC Vehicles with a short position of China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and China Construction.
Diversification Opportunities for CIMC Vehicles and China Construction
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CIMC and China is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles 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 CIMC Vehicles 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 CIMC Vehicles 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 CIMC Vehicles i.e., CIMC Vehicles and China Construction go up and down completely randomly.
Pair Corralation between CIMC Vehicles and China Construction
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to under-perform the China Construction. In addition to that, CIMC Vehicles is 1.27 times more volatile than China Construction Bank. It trades about -0.16 of its total potential returns per unit of risk. China Construction Bank is currently generating about 0.09 per unit of volatility. If you would invest 800.00 in China Construction Bank on October 17, 2024 and sell it today you would earn a total of 32.00 from holding China Construction Bank or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMC Vehicles Co vs. China Construction Bank
Performance |
| Timeline |
| CIMC Vehicles |
| China Construction Bank |
CIMC Vehicles and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and China Construction
The main advantage of trading using opposite CIMC Vehicles and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles 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.| CIMC Vehicles vs. Jiangsu Financial Leasing | CIMC Vehicles vs. Guangdong Jingyi Metal | CIMC Vehicles vs. Shenwu Energy Saving | CIMC Vehicles vs. Xiamen Bank Co |
| China Construction vs. Jiangsu Xinri E Vehicle | China Construction vs. Iat Automobile Technology | China Construction vs. CIMC Vehicles Co | China Construction vs. Innovative Medical Management |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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