Correlation Between China Construction and Bosera CMSK
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By analyzing existing cross correlation between China Construction Bank and Bosera CMSK Industrial, you can compare the effects of market volatilities on China Construction and Bosera CMSK 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 Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Bosera CMSK.
Diversification Opportunities for China Construction and Bosera CMSK
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Bosera is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Bosera CMSK Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosera CMSK Industrial 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 Bosera CMSK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosera CMSK Industrial has no effect on the direction of China Construction i.e., China Construction and Bosera CMSK go up and down completely randomly.
Pair Corralation between China Construction and Bosera CMSK
Assuming the 90 days trading horizon China Construction Bank is expected to generate 1.4 times more return on investment than Bosera CMSK. However, China Construction is 1.4 times more volatile than Bosera CMSK Industrial. It trades about 0.38 of its potential returns per unit of risk. Bosera CMSK Industrial is currently generating about 0.34 per unit of risk. If you would invest 804.00 in China Construction Bank on September 29, 2024 and sell it today you would earn a total of 73.00 from holding China Construction Bank or generate 9.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Bosera CMSK Industrial
Performance |
| Timeline |
| China Construction Bank |
| Bosera CMSK Industrial |
China Construction and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Bosera CMSK
The main advantage of trading using opposite China Construction and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Bosera CMSK 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 Bosera CMSK will offset losses from the drop in Bosera CMSK'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 |
| Bosera CMSK vs. Industrial and Commercial | Bosera CMSK vs. China Construction Bank | Bosera CMSK vs. Agricultural Bank of | Bosera CMSK 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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