Correlation Between China Construction and ZJBC Information
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and ZJBC Information Technology, you can compare the effects of market volatilities on China Construction and ZJBC Information 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 ZJBC Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and ZJBC Information.
Diversification Opportunities for China Construction and ZJBC Information
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and ZJBC is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and ZJBC Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZJBC Information Tec 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 ZJBC Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZJBC Information Tec has no effect on the direction of China Construction i.e., China Construction and ZJBC Information go up and down completely randomly.
Pair Corralation between China Construction and ZJBC Information
Assuming the 90 days trading horizon China Construction is expected to generate 1.69 times less return on investment than ZJBC Information. But when comparing it to its historical volatility, China Construction Bank is 2.5 times less risky than ZJBC Information. It trades about 0.08 of its potential returns per unit of risk. ZJBC Information Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 198.00 in ZJBC Information Technology on September 4, 2024 and sell it today you would earn a total of 70.00 from holding ZJBC Information Technology or generate 35.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. ZJBC Information Technology
Performance |
| Timeline |
| China Construction Bank |
| ZJBC Information Tec |
China Construction and ZJBC Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and ZJBC Information
The main advantage of trading using opposite China Construction and ZJBC Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, ZJBC Information 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 ZJBC Information will offset losses from the drop in ZJBC Information's long position.| China Construction vs. Henan Shuanghui Investment | China Construction vs. Servyou Software Group | China Construction vs. Hunan Investment Group | China Construction vs. Harbin Hatou Investment |
| ZJBC Information vs. Industrial and Commercial | ZJBC Information vs. Agricultural Bank of | ZJBC Information vs. China Construction Bank | ZJBC Information 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |