Correlation Between China Construction and Vatti Corp
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By analyzing existing cross correlation between China Construction Bank and Vatti Corp, you can compare the effects of market volatilities on China Construction and Vatti Corp 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 Vatti Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Vatti Corp.
Diversification Opportunities for China Construction and Vatti Corp
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Vatti is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Vatti Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vatti Corp 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 Vatti Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vatti Corp has no effect on the direction of China Construction i.e., China Construction and Vatti Corp go up and down completely randomly.
Pair Corralation between China Construction and Vatti Corp
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.54 times more return on investment than Vatti Corp. However, China Construction Bank is 1.87 times less risky than Vatti Corp. It trades about 0.08 of its potential returns per unit of risk. Vatti Corp is currently generating about 0.03 per unit of risk. If you would invest 529.00 in China Construction Bank on October 16, 2024 and sell it today you would earn a total of 300.00 from holding China Construction Bank or generate 56.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Vatti Corp
Performance |
| Timeline |
| China Construction Bank |
| Vatti Corp |
China Construction and Vatti Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Vatti Corp
The main advantage of trading using opposite China Construction and Vatti Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Vatti Corp 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 Vatti Corp will offset losses from the drop in Vatti Corp's long position.| China Construction vs. Jilin Chemical Fibre | China Construction vs. Liuzhou Chemical Industry | China Construction vs. Hainan Haiqi Transportation | China Construction vs. Longxing Chemical Stock |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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