Correlation Between China Construction and Kuang Chi
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By analyzing existing cross correlation between China Construction Bank and Kuang Chi Technologies, you can compare the effects of market volatilities on China Construction and Kuang Chi 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 Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Kuang Chi.
Diversification Opportunities for China Construction and Kuang Chi
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Kuang is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies 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 Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of China Construction i.e., China Construction and Kuang Chi go up and down completely randomly.
Pair Corralation between China Construction and Kuang Chi
Assuming the 90 days trading horizon China Construction is expected to generate 13.81 times less return on investment than Kuang Chi. But when comparing it to its historical volatility, China Construction Bank is 2.04 times less risky than Kuang Chi. It trades about 0.03 of its potential returns per unit of risk. Kuang Chi Technologies is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 4,065 in Kuang Chi Technologies on November 27, 2024 and sell it today you would earn a total of 317.00 from holding Kuang Chi Technologies or generate 7.8% 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. Kuang Chi Technologies
Performance |
| Timeline |
| China Construction Bank |
| Kuang Chi Technologies |
China Construction and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Kuang Chi
The main advantage of trading using opposite China Construction and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| China Construction vs. Innovative Medical Management | China Construction vs. Changjiang Publishing Media | China Construction vs. Duzhe Publishing Media | China Construction vs. Huaxia Fund Management |
| Kuang Chi vs. Liaoning Chengda Biotechnology | Kuang Chi vs. Fujian Longzhou Transportation | Kuang Chi vs. Sichuan Hebang Biotechnology | Kuang Chi vs. Ningbo MedicalSystem Biotechnology |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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