Correlation Between China Construction and XinJiang GuoTong
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on China Construction and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and XinJiang GuoTong.
Diversification Opportunities for China Construction and XinJiang GuoTong
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and XinJiang is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of China Construction i.e., China Construction and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between China Construction and XinJiang GuoTong
Assuming the 90 days trading horizon China Construction is expected to generate 1.88 times less return on investment than XinJiang GuoTong. But when comparing it to its historical volatility, China Construction Bank is 2.05 times less risky than XinJiang GuoTong. It trades about 0.06 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 749.00 in XinJiang GuoTong Pipeline on September 3, 2024 and sell it today you would earn a total of 157.00 from holding XinJiang GuoTong Pipeline or generate 20.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| China Construction Bank |
| XinJiang GuoTong Pipeline |
China Construction and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and XinJiang GuoTong
The main advantage of trading using opposite China Construction and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| China Construction vs. DO Home Collection | China Construction vs. China National Software | China Construction vs. Guangdong Jingyi Metal | China Construction vs. Guocheng Mining Co |
| XinJiang GuoTong vs. Iat Automobile Technology | XinJiang GuoTong vs. Sinomach Automobile Co | XinJiang GuoTong vs. Guangzhou Automobile Group | XinJiang GuoTong vs. Ningxia Younglight Chemicals |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |