Correlation Between China Construction and YLZ Information
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By analyzing existing cross correlation between China Construction Bank and YLZ Information Tech, you can compare the effects of market volatilities on China Construction and YLZ 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 YLZ Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and YLZ Information.
Diversification Opportunities for China Construction and YLZ Information
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and YLZ is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and YLZ Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YLZ Information 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 YLZ Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YLZ Information Tech has no effect on the direction of China Construction i.e., China Construction and YLZ Information go up and down completely randomly.
Pair Corralation between China Construction and YLZ Information
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.32 times more return on investment than YLZ Information. However, China Construction Bank is 3.09 times less risky than YLZ Information. It trades about 0.08 of its potential returns per unit of risk. YLZ Information Tech is currently generating about -0.02 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. YLZ Information Tech
Performance |
| Timeline |
| China Construction Bank |
| YLZ Information Tech |
China Construction and YLZ Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and YLZ Information
The main advantage of trading using opposite China Construction and YLZ Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, YLZ 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 YLZ Information will offset losses from the drop in YLZ 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 |
| YLZ Information vs. Agricultural Bank of | YLZ Information vs. China Construction Bank | YLZ Information vs. Postal Savings Bank | YLZ 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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