Correlation Between Huaibei Mining and China Construction
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By analyzing existing cross correlation between Huaibei Mining Holdings and China Construction Bank, you can compare the effects of market volatilities on Huaibei Mining 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 Huaibei Mining with a short position of China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and China Construction.
Diversification Opportunities for Huaibei Mining and China Construction
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Huaibei and China is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings 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 Huaibei Mining 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 Huaibei Mining Holdings 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 Huaibei Mining i.e., Huaibei Mining and China Construction go up and down completely randomly.
Pair Corralation between Huaibei Mining and China Construction
Assuming the 90 days trading horizon Huaibei Mining Holdings is expected to under-perform the China Construction. In addition to that, Huaibei Mining is 1.69 times more volatile than China Construction Bank. It trades about -0.05 of its total potential returns per unit of risk. China Construction Bank is currently generating about 0.06 per unit of volatility. If you would invest 696.00 in China Construction Bank on October 22, 2024 and sell it today you would earn a total of 133.00 from holding China Construction Bank or generate 19.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaibei Mining Holdings vs. China Construction Bank
Performance |
| Timeline |
| Huaibei Mining Holdings |
| China Construction Bank |
Huaibei Mining and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaibei Mining and China Construction
The main advantage of trading using opposite Huaibei Mining and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining 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.| Huaibei Mining vs. Songz Automobile Air | Huaibei Mining vs. China National Software | Huaibei Mining vs. Guangzhou Automobile Group | Huaibei Mining vs. Anhui Jianghuai Automobile |
| China Construction vs. Pengxin International Mining | China Construction vs. Western Metal Materials | China Construction vs. Guangdong Jingyi Metal | China Construction vs. Easyhome New Retail |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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