Correlation Between China Construction and Allmed Medical
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and Allmed Medical Products, you can compare the effects of market volatilities on China Construction and Allmed 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 Allmed Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Allmed Medical.
Diversification Opportunities for China Construction and Allmed Medical
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Allmed is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Allmed Medical Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allmed Medical Products 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 Allmed Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allmed Medical Products has no effect on the direction of China Construction i.e., China Construction and Allmed Medical go up and down completely randomly.
Pair Corralation between China Construction and Allmed Medical
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.58 times more return on investment than Allmed Medical. However, China Construction Bank is 1.73 times less risky than Allmed Medical. It trades about 0.08 of its potential returns per unit of risk. Allmed Medical Products is currently generating about -0.03 per unit of risk. If you would invest 528.00 in China Construction Bank on August 29, 2024 and sell it today you would earn a total of 278.00 from holding China Construction Bank or generate 52.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Allmed Medical Products
Performance |
| Timeline |
| China Construction Bank |
| Allmed Medical Products |
China Construction and Allmed Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Allmed Medical
The main advantage of trading using opposite China Construction and Allmed Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Allmed 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 Allmed Medical will offset losses from the drop in Allmed 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 |
| Allmed Medical vs. Industrial and Commercial | Allmed Medical vs. China Construction Bank | Allmed Medical vs. Agricultural Bank of | Allmed 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |