Correlation Between China Construction and Beijing SPC
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By analyzing existing cross correlation between China Construction Bank and Beijing SPC Environment, you can compare the effects of market volatilities on China Construction and Beijing SPC 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 Beijing SPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Beijing SPC.
Diversification Opportunities for China Construction and Beijing SPC
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Beijing is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Beijing SPC Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SPC Environment 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 Beijing SPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SPC Environment has no effect on the direction of China Construction i.e., China Construction and Beijing SPC go up and down completely randomly.
Pair Corralation between China Construction and Beijing SPC
Assuming the 90 days trading horizon China Construction Bank is expected to under-perform the Beijing SPC. But the stock apears to be less risky and, when comparing its historical volatility, China Construction Bank is 2.27 times less risky than Beijing SPC. The stock trades about -0.1 of its potential returns per unit of risk. The Beijing SPC Environment is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 417.00 in Beijing SPC Environment on September 4, 2024 and sell it today you would earn a total of 27.00 from holding Beijing SPC Environment or generate 6.47% 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. Beijing SPC Environment
Performance |
| Timeline |
| China Construction Bank |
| Beijing SPC Environment |
China Construction and Beijing SPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Beijing SPC
The main advantage of trading using opposite China Construction and Beijing SPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Beijing SPC 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 Beijing SPC will offset losses from the drop in Beijing SPC's long position.| China Construction vs. Henan Shuanghui Investment | China Construction vs. Servyou Software Group | China Construction vs. Hunan Investment Group | China Construction vs. Harbin Hatou Investment |
| Beijing SPC vs. Agricultural Bank of | Beijing SPC vs. Industrial and Commercial | Beijing SPC vs. Bank of China | Beijing SPC 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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