Correlation Between China Construction and Northking Information
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By analyzing existing cross correlation between China Construction Bank and Northking Information Technology, you can compare the effects of market volatilities on China Construction and Northking Information 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 Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Northking Information.
Diversification Opportunities for China Construction and Northking Information
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Northking is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information 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 Northking Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northking Information has no effect on the direction of China Construction i.e., China Construction and Northking Information go up and down completely randomly.
Pair Corralation between China Construction and Northking Information
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.41 times more return on investment than Northking Information. However, China Construction Bank is 2.42 times less risky than Northking Information. It trades about 0.08 of its potential returns per unit of risk. Northking Information Technology is currently generating about 0.03 per unit of risk. If you would invest 529.00 in China Construction Bank on September 3, 2024 and sell it today you would earn a total of 269.00 from holding China Construction Bank or generate 50.85% 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. Northking Information Technolo
Performance |
| Timeline |
| China Construction Bank |
| Northking Information |
China Construction and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Northking Information
The main advantage of trading using opposite China Construction and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Northking Information 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 Northking Information will offset losses from the drop in Northking Information's long position.| China Construction vs. DO Home Collection | China Construction vs. China National Software | China Construction vs. Guangdong Jingyi Metal | China Construction vs. Guocheng Mining Co |
| Northking Information vs. Agricultural Bank of | Northking Information vs. China Construction Bank | Northking Information vs. Postal Savings Bank | Northking Information vs. Bank of Communications |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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