Correlation Between China Construction and Suzhou Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and Suzhou Industrial Park, you can compare the effects of market volatilities on China Construction and Suzhou Industrial 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 Suzhou Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Suzhou Industrial.
Diversification Opportunities for China Construction and Suzhou Industrial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Suzhou is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Suzhou Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Industrial Park 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 Suzhou Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Industrial Park has no effect on the direction of China Construction i.e., China Construction and Suzhou Industrial go up and down completely randomly.
Pair Corralation between China Construction and Suzhou Industrial
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.31 times more return on investment than Suzhou Industrial. However, China Construction Bank is 3.27 times less risky than Suzhou Industrial. It trades about 0.13 of its potential returns per unit of risk. Suzhou Industrial Park is currently generating about -0.15 per unit of risk. If you would invest 829.00 in China Construction Bank on November 7, 2024 and sell it today you would earn a total of 25.00 from holding China Construction Bank or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Suzhou Industrial Park
Performance |
| Timeline |
| China Construction Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Suzhou Industrial Park |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Construction and Suzhou Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Suzhou Industrial
The main advantage of trading using opposite China Construction and Suzhou Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Suzhou Industrial 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 Suzhou Industrial will offset losses from the drop in Suzhou Industrial's long position.The idea behind China Construction Bank and Suzhou Industrial Park 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.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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |