Correlation Between China Construction and Zoje Resources
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By analyzing existing cross correlation between China Construction Bank and Zoje Resources Investment, you can compare the effects of market volatilities on China Construction and Zoje Resources 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 Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Zoje Resources.
Diversification Opportunities for China Construction and Zoje Resources
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Zoje is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment 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 Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of China Construction i.e., China Construction and Zoje Resources go up and down completely randomly.
Pair Corralation between China Construction and Zoje Resources
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.5 times more return on investment than Zoje Resources. However, China Construction Bank is 2.01 times less risky than Zoje Resources. It trades about 0.13 of its potential returns per unit of risk. Zoje Resources Investment is currently generating about -0.07 per unit of risk. If you would invest 829.00 in China Construction Bank on November 5, 2024 and sell it today you would earn a total of 25.00 from holding China Construction Bank or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Zoje Resources Investment
Performance |
| Timeline |
| China Construction Bank |
| Zoje Resources Investment |
China Construction and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Zoje Resources
The main advantage of trading using opposite China Construction and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| China Construction vs. Easyhome New Retail | China Construction vs. Chongqing Changan Automobile | China Construction vs. Ningbo Ligong Online | China Construction vs. Ningbo Tip Rubber |
| Zoje Resources vs. Hainan Haiqi Transportation | Zoje Resources vs. Sichuan Fulin Transportation | Zoje Resources vs. Longjian Road Bridge | Zoje Resources vs. Shanghai CEO Environmental |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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