Correlation Between China Construction and Chengdu Xinzhu
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and Chengdu Xinzhu RoadBridge, you can compare the effects of market volatilities on China Construction and Chengdu Xinzhu 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 Chengdu Xinzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Chengdu Xinzhu.
Diversification Opportunities for China Construction and Chengdu Xinzhu
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Chengdu is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Chengdu Xinzhu RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xinzhu RoadBridge 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 Chengdu Xinzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xinzhu RoadBridge has no effect on the direction of China Construction i.e., China Construction and Chengdu Xinzhu go up and down completely randomly.
Pair Corralation between China Construction and Chengdu Xinzhu
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.26 times more return on investment than Chengdu Xinzhu. However, China Construction Bank is 3.92 times less risky than Chengdu Xinzhu. It trades about 0.41 of its potential returns per unit of risk. Chengdu Xinzhu RoadBridge is currently generating about -0.01 per unit of risk. If you would invest 806.00 in China Construction Bank on September 28, 2024 and sell it today you would earn a total of 77.00 from holding China Construction Bank or generate 9.55% 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. Chengdu Xinzhu RoadBridge
Performance |
| Timeline |
| China Construction Bank |
| Chengdu Xinzhu RoadBridge |
China Construction and Chengdu Xinzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Chengdu Xinzhu
The main advantage of trading using opposite China Construction and Chengdu Xinzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Chengdu Xinzhu 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 Chengdu Xinzhu will offset losses from the drop in Chengdu Xinzhu's long position.| China Construction vs. Harbin Air Conditioning | China Construction vs. Beijing Wandong Medical | China Construction vs. Inspur Software Co | China Construction vs. Ningbo MedicalSystem Biotechnology |
| Chengdu Xinzhu vs. Fuda Alloy Materials | Chengdu Xinzhu vs. Kuangda Technology Group | Chengdu Xinzhu vs. Sinofibers Technology Co | Chengdu Xinzhu vs. Kuang Chi Technologies |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |