Correlation Between China Construction and Beijing Kaiwen
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By analyzing existing cross correlation between China Construction Bank and Beijing Kaiwen Education, you can compare the effects of market volatilities on China Construction and Beijing Kaiwen 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 Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Beijing Kaiwen.
Diversification Opportunities for China Construction and Beijing Kaiwen
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Beijing is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education 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 Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of China Construction i.e., China Construction and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between China Construction and Beijing Kaiwen
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.42 times more return on investment than Beijing Kaiwen. However, China Construction Bank is 2.41 times less risky than Beijing Kaiwen. It trades about 0.09 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about 0.01 per unit of risk. If you would invest 526.00 in China Construction Bank on November 5, 2024 and sell it today you would earn a total of 328.00 from holding China Construction Bank or generate 62.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Beijing Kaiwen Education
Performance |
| Timeline |
| China Construction Bank |
| Beijing Kaiwen Education |
China Construction and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Beijing Kaiwen
The main advantage of trading using opposite China Construction and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Beijing Kaiwen 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 Kaiwen will offset losses from the drop in Beijing Kaiwen's long position.| China Construction vs. Easyhome New Retail | China Construction vs. Chongqing Changan Automobile | China Construction vs. Ningbo Ligong Online | China Construction vs. Ningbo Tip Rubber |
| Beijing Kaiwen vs. Industrial Bank Co | Beijing Kaiwen vs. China Sports Industry | Beijing Kaiwen vs. Jiangsu Jinling Sports | Beijing Kaiwen vs. Anhui Huaheng 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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