Correlation Between Gem Year and China Construction
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By analyzing existing cross correlation between Gem Year Industrial Co and China Construction Bank, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and China Construction.
Diversification Opportunities for Gem Year and China Construction
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gem and China is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial 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 Gem Year 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 Gem Year Industrial 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 Gem Year i.e., Gem Year and China Construction go up and down completely randomly.
Pair Corralation between Gem Year and China Construction
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 1.85 times more return on investment than China Construction. However, Gem Year is 1.85 times more volatile than China Construction Bank. It trades about 0.07 of its potential returns per unit of risk. China Construction Bank is currently generating about 0.07 per unit of risk. If you would invest 358.00 in Gem Year Industrial Co on August 29, 2024 and sell it today you would earn a total of 83.00 from holding Gem Year Industrial Co or generate 23.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. China Construction Bank
Performance |
| Timeline |
| Gem Year Industrial |
| China Construction Bank |
Gem Year and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and China Construction
The main advantage of trading using opposite Gem Year and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. Industrial and Commercial | Gem Year vs. Agricultural Bank of | Gem Year vs. China Construction Bank | Gem Year vs. Bank of China |
| China Construction vs. Zhongtong Guomai Communication | China Construction vs. China Satellite Communications | China Construction vs. SUNSEA Telecommunications Co | China Construction vs. Omnijoi Media Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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