Correlation Between China Construction and Wangsu Science
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By analyzing existing cross correlation between China Construction Bank and Wangsu Science Tech, you can compare the effects of market volatilities on China Construction and Wangsu Science 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 Wangsu Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Wangsu Science.
Diversification Opportunities for China Construction and Wangsu Science
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Wangsu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Wangsu Science Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wangsu Science Tech 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 Wangsu Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wangsu Science Tech has no effect on the direction of China Construction i.e., China Construction and Wangsu Science go up and down completely randomly.
Pair Corralation between China Construction and Wangsu Science
If you would invest 0.00 in Wangsu Science Tech on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Wangsu Science Tech or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
China Construction Bank vs. Wangsu Science Tech
Performance |
| Timeline |
| China Construction Bank |
| Wangsu Science Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
China Construction and Wangsu Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Wangsu Science
The main advantage of trading using opposite China Construction and Wangsu Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Wangsu Science 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 Wangsu Science will offset losses from the drop in Wangsu Science's long position.The idea behind China Construction Bank and Wangsu Science Tech pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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