Correlation Between China Construction and Zhejiang Construction
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By analyzing existing cross correlation between China Construction Bank and Zhejiang Construction Investment, you can compare the effects of market volatilities on China Construction and Zhejiang Construction 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 Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Zhejiang Construction.
Diversification Opportunities for China Construction and Zhejiang Construction
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Zhejiang is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction 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 Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of China Construction i.e., China Construction and Zhejiang Construction go up and down completely randomly.
Pair Corralation between China Construction and Zhejiang Construction
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.44 times more return on investment than Zhejiang Construction. However, China Construction Bank is 2.25 times less risky than Zhejiang Construction. It trades about 0.08 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about -0.05 per unit of risk. If you would invest 529.00 in China Construction Bank on October 20, 2024 and sell it today you would earn a total of 305.00 from holding China Construction Bank or generate 57.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
China Construction Bank vs. Zhejiang Construction Investme
Performance |
| Timeline |
| China Construction Bank |
| Zhejiang Construction |
China Construction and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Zhejiang Construction
The main advantage of trading using opposite China Construction and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's long position.| China Construction vs. Hengli Petrochemical Co | China Construction vs. Maoming Petro Chemical Shihua | China Construction vs. Jinsanjiang Silicon Material | China Construction vs. Wuhan Yangtze Communication |
| Zhejiang Construction vs. Sublime China Information | Zhejiang Construction vs. Dymatic Chemicals | Zhejiang Construction vs. Miracll Chemicals Co | Zhejiang Construction vs. Shenzhen SDG Information |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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