Correlation Between China Construction and Double Medical
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By analyzing existing cross correlation between China Construction Bank and Double Medical Technology, you can compare the effects of market volatilities on China Construction and Double Medical 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 Double Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Double Medical.
Diversification Opportunities for China Construction and Double Medical
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Double is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Double Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Double Medical Technology 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 Double Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Double Medical Technology has no effect on the direction of China Construction i.e., China Construction and Double Medical go up and down completely randomly.
Pair Corralation between China Construction and Double Medical
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.47 times more return on investment than Double Medical. However, China Construction Bank is 2.11 times less risky than Double Medical. It trades about -0.02 of its potential returns per unit of risk. Double Medical Technology is currently generating about -0.15 per unit of risk. If you would invest 801.00 in China Construction Bank on August 29, 2024 and sell it today you would lose (3.00) from holding China Construction Bank or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Double Medical Technology
Performance |
| Timeline |
| China Construction Bank |
| Double Medical Technology |
China Construction and Double Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Double Medical
The main advantage of trading using opposite China Construction and Double Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Double Medical 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 Double Medical will offset losses from the drop in Double Medical's long position.| China Construction vs. Xinjiang Tianrun Dairy | China Construction vs. HaiXin Foods Co | China Construction vs. Juewei Food Co | China Construction vs. Suzhou Douson Drilling |
| Double Medical vs. Industrial and Commercial | Double Medical vs. China Construction Bank | Double Medical vs. Agricultural Bank of | Double Medical vs. Bank of China |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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