Correlation Between China Construction and Shenzhen SDG
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By analyzing existing cross correlation between China Construction Bank and Shenzhen SDG Information, you can compare the effects of market volatilities on China Construction and Shenzhen SDG 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 China Construction with a short position of Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Shenzhen SDG.
Diversification Opportunities for China Construction and Shenzhen SDG
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Shenzhen is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Shenzhen SDG Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Information and China Construction 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 China Construction Bank are associated (or correlated) with Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Information has no effect on the direction of China Construction i.e., China Construction and Shenzhen SDG go up and down completely randomly.
Pair Corralation between China Construction and Shenzhen SDG
Assuming the 90 days trading horizon China Construction is expected to generate 3.75 times less return on investment than Shenzhen SDG. But when comparing it to its historical volatility, China Construction Bank is 1.58 times less risky than Shenzhen SDG. It trades about 0.1 of its potential returns per unit of risk. Shenzhen SDG Information is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 420.00 in Shenzhen SDG Information on September 3, 2024 and sell it today you would earn a total of 166.00 from holding Shenzhen SDG Information or generate 39.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Shenzhen SDG Information
Performance |
| Timeline |
| China Construction Bank |
| Shenzhen SDG Information |
China Construction and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Shenzhen SDG
The main advantage of trading using opposite China Construction and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Shenzhen SDG 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 Shenzhen SDG will offset losses from the drop in Shenzhen SDG's long position.| China Construction vs. DO Home Collection | China Construction vs. China National Software | China Construction vs. Guangdong Jingyi Metal | China Construction vs. Guocheng Mining Co |
| Shenzhen SDG vs. Agricultural Bank of | Shenzhen SDG vs. China Construction Bank | Shenzhen SDG vs. Postal Savings Bank | Shenzhen SDG vs. Bank of Communications |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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