Correlation Between China Construction and Lander Sports
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By analyzing existing cross correlation between China Construction Bank and Lander Sports Development, you can compare the effects of market volatilities on China Construction and Lander Sports 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 Lander Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Lander Sports.
Diversification Opportunities for China Construction and Lander Sports
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Lander is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Lander Sports Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lander Sports Development 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 Lander Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lander Sports Development has no effect on the direction of China Construction i.e., China Construction and Lander Sports go up and down completely randomly.
Pair Corralation between China Construction and Lander Sports
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.25 times more return on investment than Lander Sports. However, China Construction Bank is 4.03 times less risky than Lander Sports. It trades about -0.09 of its potential returns per unit of risk. Lander Sports Development is currently generating about -0.13 per unit of risk. If you would invest 801.00 in China Construction Bank on August 27, 2024 and sell it today you would lose (13.00) from holding China Construction Bank or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Lander Sports Development
Performance |
| Timeline |
| China Construction Bank |
| Lander Sports Development |
China Construction and Lander Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Lander Sports
The main advantage of trading using opposite China Construction and Lander Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Lander Sports 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 Lander Sports will offset losses from the drop in Lander Sports' long position.| China Construction vs. Threes Company Media | China Construction vs. Omnijoi Media Corp | China Construction vs. Nanxing Furniture Machinery | China Construction vs. Qumei Furniture Group |
| Lander Sports vs. Industrial and Commercial | Lander Sports vs. China Construction Bank | Lander Sports vs. Bank of China | Lander Sports vs. Agricultural Bank of |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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