Correlation Between China Construction and GRG Banking
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By analyzing existing cross correlation between China Construction Bank and GRG Banking Equipment, you can compare the effects of market volatilities on China Construction and GRG Banking 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 GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and GRG Banking.
Diversification Opportunities for China Construction and GRG Banking
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and GRG is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment 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 GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of China Construction i.e., China Construction and GRG Banking go up and down completely randomly.
Pair Corralation between China Construction and GRG Banking
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.57 times more return on investment than GRG Banking. However, China Construction Bank is 1.75 times less risky than GRG Banking. It trades about 0.09 of its potential returns per unit of risk. GRG Banking Equipment is currently generating about 0.02 per unit of risk. If you would invest 526.00 in China Construction Bank on November 5, 2024 and sell it today you would earn a total of 328.00 from holding China Construction Bank or generate 62.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. GRG Banking Equipment
Performance |
| Timeline |
| China Construction Bank |
| GRG Banking Equipment |
China Construction and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and GRG Banking
The main advantage of trading using opposite China Construction and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's 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 |
| GRG Banking vs. Huatian Hotel Group | GRG Banking vs. Beijing Enlight Media | GRG Banking vs. Easyhome New Retail | GRG Banking vs. Guangdong Jinma Entertainment |
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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