Correlation Between China Construction and Wasu Media
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By analyzing existing cross correlation between China Construction Bank and Wasu Media Holding, you can compare the effects of market volatilities on China Construction and Wasu Media 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 Wasu Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Wasu Media.
Diversification Opportunities for China Construction and Wasu Media
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Wasu is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Wasu Media Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasu Media Holding 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 Wasu Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasu Media Holding has no effect on the direction of China Construction i.e., China Construction and Wasu Media go up and down completely randomly.
Pair Corralation between China Construction and Wasu Media
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.58 times more return on investment than Wasu Media. However, China Construction Bank is 1.71 times less risky than Wasu Media. It trades about 0.13 of its potential returns per unit of risk. Wasu Media Holding is currently generating about -0.05 per unit of risk. If you would invest 798.00 in China Construction Bank on October 30, 2024 and sell it today you would earn a total of 56.00 from holding China Construction Bank or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Wasu Media Holding
Performance |
| Timeline |
| China Construction Bank |
| Wasu Media Holding |
China Construction and Wasu Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Wasu Media
The main advantage of trading using opposite China Construction and Wasu Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Wasu Media 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 Wasu Media will offset losses from the drop in Wasu Media's long position.| China Construction vs. Beingmate Baby Child | China Construction vs. Runjian Communication Co | China Construction vs. Fiberhome Telecommunication Technologies | China Construction vs. AUPU Home Style |
| Wasu Media vs. Cambricon Technologies Corp | Wasu Media vs. SGSG Sciencetechnology Co | Wasu Media vs. Zhonghang Electronic Measuring | Wasu Media vs. Loongson Technology 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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