Correlation Between China Construction and Everjoy Health
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By analyzing existing cross correlation between China Construction Bank and Everjoy Health Group, you can compare the effects of market volatilities on China Construction and Everjoy Health 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 Everjoy Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Everjoy Health.
Diversification Opportunities for China Construction and Everjoy Health
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Everjoy is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Everjoy Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everjoy Health Group 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 Everjoy Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everjoy Health Group has no effect on the direction of China Construction i.e., China Construction and Everjoy Health go up and down completely randomly.
Pair Corralation between China Construction and Everjoy Health
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.27 times more return on investment than Everjoy Health. However, China Construction Bank is 3.71 times less risky than Everjoy Health. It trades about -0.02 of its potential returns per unit of risk. Everjoy Health Group is currently generating about -0.02 per unit of risk. If you would invest 801.00 in China Construction Bank on August 29, 2024 and sell it today you would lose (3.00) from holding China Construction Bank or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Everjoy Health Group
Performance |
| Timeline |
| China Construction Bank |
| Everjoy Health Group |
China Construction and Everjoy Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Everjoy Health
The main advantage of trading using opposite China Construction and Everjoy Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Everjoy Health 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 Everjoy Health will offset losses from the drop in Everjoy Health's long position.| China Construction vs. Zhongtong Guomai Communication | China Construction vs. China Satellite Communications | China Construction vs. SUNSEA Telecommunications Co | China Construction vs. Omnijoi Media Corp |
| Everjoy Health vs. Agricultural Bank of | Everjoy Health vs. Industrial and Commercial | Everjoy Health vs. Bank of China | Everjoy Health vs. China Construction Bank |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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