Correlation Between China Construction and By Health
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By analyzing existing cross correlation between China Construction Bank and By health, you can compare the effects of market volatilities on China Construction and By Health 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 By Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and By Health.
Diversification Opportunities for China Construction and By Health
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and 300146 is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and By health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on By health 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 By Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of By health has no effect on the direction of China Construction i.e., China Construction and By Health go up and down completely randomly.
Pair Corralation between China Construction and By Health
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.4 times more return on investment than By Health. However, China Construction Bank is 2.53 times less risky than By Health. It trades about -0.18 of its potential returns per unit of risk. By health is currently generating about -0.17 per unit of risk. If you would invest 811.00 in China Construction Bank on August 26, 2024 and sell it today you would lose (27.00) from holding China Construction Bank or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. By health
Performance |
| Timeline |
| China Construction Bank |
| By health |
China Construction and By Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and By Health
The main advantage of trading using opposite China Construction and By Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, By Health 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 By Health will offset losses from the drop in By Health's long position.| China Construction vs. Zhengzhou Qianweiyangchu Food | China Construction vs. Panda Dairy Corp | China Construction vs. Youyou Foods Co | China Construction vs. Zhongyin Babi Food |
| By Health vs. Industrial and Commercial | By Health vs. China Construction Bank | By Health vs. Bank of China | By Health vs. Agricultural Bank of |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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