Correlation Between Ziel Home and China Construction
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By analyzing existing cross correlation between Ziel Home Furnishing and China Construction Bank, you can compare the effects of market volatilities on Ziel Home 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 Ziel Home with a short position of China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ziel Home and China Construction.
Diversification Opportunities for Ziel Home and China Construction
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ziel and China is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ziel Home Furnishing 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 Ziel Home 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 Ziel Home Furnishing 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 Ziel Home i.e., Ziel Home and China Construction go up and down completely randomly.
Pair Corralation between Ziel Home and China Construction
Assuming the 90 days trading horizon Ziel Home Furnishing is expected to generate 3.4 times more return on investment than China Construction. However, Ziel Home is 3.4 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 -0.02 per unit of risk. If you would invest 2,000 in Ziel Home Furnishing on August 29, 2024 and sell it today you would earn a total of 13.00 from holding Ziel Home Furnishing or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ziel Home Furnishing vs. China Construction Bank
Performance |
| Timeline |
| Ziel Home Furnishing |
| China Construction Bank |
Ziel Home and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ziel Home and China Construction
The main advantage of trading using opposite Ziel Home and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ziel Home 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.| Ziel Home vs. Agricultural Bank of | Ziel Home vs. Industrial and Commercial | Ziel Home vs. Bank of China | Ziel Home vs. China Construction Bank |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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