Correlation Between China Construction and Tieling Newcity
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By analyzing existing cross correlation between China Construction Bank and Tieling Newcity Investment, you can compare the effects of market volatilities on China Construction and Tieling Newcity 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 Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Tieling Newcity.
Diversification Opportunities for China Construction and Tieling Newcity
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Tieling is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Tieling Newcity Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tieling Newcity Inve 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 Tieling Newcity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tieling Newcity Inve has no effect on the direction of China Construction i.e., China Construction and Tieling Newcity go up and down completely randomly.
Pair Corralation between China Construction and Tieling Newcity
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.32 times more return on investment than Tieling Newcity. However, China Construction Bank is 3.15 times less risky than Tieling Newcity. It trades about 0.49 of its potential returns per unit of risk. Tieling Newcity Investment is currently generating about 0.12 per unit of risk. If you would invest 798.00 in China Construction Bank on September 27, 2024 and sell it today you would earn a total of 90.00 from holding China Construction Bank or generate 11.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Tieling Newcity Investment
Performance |
| Timeline |
| China Construction Bank |
| Tieling Newcity Inve |
China Construction and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Tieling Newcity
The main advantage of trading using opposite China Construction and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Tieling Newcity 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 Tieling Newcity will offset losses from the drop in Tieling Newcity's long position.| China Construction vs. Industrial and Commercial | China Construction vs. Kweichow Moutai Co | China Construction vs. Agricultural Bank of | China Construction vs. China Mobile Limited |
| Tieling Newcity vs. Industrial and Commercial | Tieling Newcity vs. Agricultural Bank of | Tieling Newcity vs. China Construction Bank | Tieling Newcity vs. Bank of China |
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 CEOs Directory module to screen CEOs from public companies around the world.
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