Correlation Between China Construction and Tianjin LVYIN
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and Tianjin LVYIN Landscape, you can compare the effects of market volatilities on China Construction and Tianjin LVYIN 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 Tianjin LVYIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Tianjin LVYIN.
Diversification Opportunities for China Construction and Tianjin LVYIN
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Tianjin is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Tianjin LVYIN Landscape in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin LVYIN Landscape 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 Tianjin LVYIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin LVYIN Landscape has no effect on the direction of China Construction i.e., China Construction and Tianjin LVYIN go up and down completely randomly.
Pair Corralation between China Construction and Tianjin LVYIN
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.3 times more return on investment than Tianjin LVYIN. However, China Construction Bank is 3.36 times less risky than Tianjin LVYIN. It trades about 0.49 of its potential returns per unit of risk. Tianjin LVYIN Landscape is currently generating about -0.03 per unit of risk. If you would invest 788.00 in China Construction Bank on September 26, 2024 and sell it today you would earn a total of 90.00 from holding China Construction Bank or generate 11.42% 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. Tianjin LVYIN Landscape
Performance |
| Timeline |
| China Construction Bank |
| Tianjin LVYIN Landscape |
China Construction and Tianjin LVYIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Tianjin LVYIN
The main advantage of trading using opposite China Construction and Tianjin LVYIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Tianjin LVYIN 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 Tianjin LVYIN will offset losses from the drop in Tianjin LVYIN's long position.| China Construction vs. Industrial and Commercial | China Construction vs. Kweichow Moutai Co | China Construction vs. Agricultural Bank of | China Construction vs. China Mobile Limited |
| Tianjin LVYIN vs. Ming Yang Smart | Tianjin LVYIN vs. 159681 | Tianjin LVYIN vs. 159005 | Tianjin LVYIN vs. Loctek Ergonomic Technology |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |