Correlation Between China Construction and Hubei Yingtong
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on China Construction and Hubei Yingtong 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 Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Hubei Yingtong.
Diversification Opportunities for China Construction and Hubei Yingtong
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Hubei is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec 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 Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of China Construction i.e., China Construction and Hubei Yingtong go up and down completely randomly.
Pair Corralation between China Construction and Hubei Yingtong
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.25 times more return on investment than Hubei Yingtong. However, China Construction Bank is 4.06 times less risky than Hubei Yingtong. It trades about -0.02 of its potential returns per unit of risk. Hubei Yingtong Telecommunication is currently generating about -0.08 per unit of risk. If you would invest 854.00 in China Construction Bank on November 28, 2024 and sell it today you would lose (4.00) from holding China Construction Bank or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Hubei Yingtong Telecommunicati
Performance |
| Timeline |
| China Construction Bank |
| Hubei Yingtong Telec |
China Construction and Hubei Yingtong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Hubei Yingtong
The main advantage of trading using opposite China Construction and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Hubei Yingtong 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 Hubei Yingtong will offset losses from the drop in Hubei Yingtong's long position.| China Construction vs. Nexchip Semiconductor Corp | China Construction vs. Giantec Semiconductor Corp | China Construction vs. NBTM New Materials | China Construction vs. GigaDevice SemiconductorBeiji |
| Hubei Yingtong vs. Digital China Information | Hubei Yingtong vs. Nantong Haixing Electronics | Hubei Yingtong vs. Hygon Information Technology | Hubei Yingtong vs. AVCON Information Tech |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |