Correlation Between China Construction and CSG Holding
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By analyzing existing cross correlation between China Construction Bank and CSG Holding Co, you can compare the effects of market volatilities on China Construction and CSG Holding 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 CSG Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and CSG Holding.
Diversification Opportunities for China Construction and CSG Holding
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and CSG is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and CSG Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Holding 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 CSG Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Holding has no effect on the direction of China Construction i.e., China Construction and CSG Holding go up and down completely randomly.
Pair Corralation between China Construction and CSG Holding
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.98 times more return on investment than CSG Holding. However, China Construction Bank is 1.02 times less risky than CSG Holding. It trades about 0.08 of its potential returns per unit of risk. CSG Holding Co is currently generating about 0.03 per unit of risk. If you would invest 639.00 in China Construction Bank on September 14, 2024 and sell it today you would earn a total of 191.00 from holding China Construction Bank or generate 29.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
China Construction Bank vs. CSG Holding Co
Performance |
| Timeline |
| China Construction Bank |
| CSG Holding |
China Construction and CSG Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and CSG Holding
The main advantage of trading using opposite China Construction and CSG Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, CSG Holding 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 CSG Holding will offset losses from the drop in CSG Holding's long position.| China Construction vs. Tongyu Communication | China Construction vs. Zhongtong Guomai Communication | China Construction vs. Changchun Faway Automobile | China Construction vs. Allwin Telecommunication Co |
| CSG Holding vs. Jiahe Foods Industry | CSG Holding vs. YLZ Information Tech | CSG Holding vs. Fujian Anjoy Foods | CSG Holding vs. AVCON Information Tech |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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