Correlation Between China Construction and Shenzhen Clou
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By analyzing existing cross correlation between China Construction Bank and Shenzhen Clou Electronics, you can compare the effects of market volatilities on China Construction and Shenzhen Clou 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 Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Shenzhen Clou.
Diversification Opportunities for China Construction and Shenzhen Clou
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Shenzhen is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics 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 Shenzhen Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of China Construction i.e., China Construction and Shenzhen Clou go up and down completely randomly.
Pair Corralation between China Construction and Shenzhen Clou
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.47 times more return on investment than Shenzhen Clou. However, China Construction Bank is 2.13 times less risky than Shenzhen Clou. It trades about 0.08 of its potential returns per unit of risk. Shenzhen Clou Electronics is currently generating about -0.03 per unit of risk. If you would invest 519.00 in China Construction Bank on September 13, 2024 and sell it today you would earn a total of 302.00 from holding China Construction Bank or generate 58.19% 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. Shenzhen Clou Electronics
Performance |
| Timeline |
| China Construction Bank |
| Shenzhen Clou Electronics |
China Construction and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Shenzhen Clou
The main advantage of trading using opposite China Construction and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Shenzhen Clou 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 Shenzhen Clou will offset losses from the drop in Shenzhen Clou's long position.| China Construction vs. Eastroc Beverage Group | China Construction vs. Youyou Foods Co | China Construction vs. HaiXin Foods Co | China Construction vs. Shanghai Metersbonwe FashionAccessories |
| Shenzhen Clou vs. Industrial and Commercial | Shenzhen Clou vs. Agricultural Bank of | Shenzhen Clou vs. China Construction Bank | Shenzhen Clou 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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