Correlation Between China Construction and Kingsignal Technology
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By analyzing existing cross correlation between China Construction Bank and Kingsignal Technology Co, you can compare the effects of market volatilities on China Construction and Kingsignal Technology 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 Kingsignal Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Kingsignal Technology.
Diversification Opportunities for China Construction and Kingsignal Technology
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Kingsignal is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Kingsignal Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsignal Technology 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 Kingsignal Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsignal Technology has no effect on the direction of China Construction i.e., China Construction and Kingsignal Technology go up and down completely randomly.
Pair Corralation between China Construction and Kingsignal Technology
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.3 times more return on investment than Kingsignal Technology. However, China Construction Bank is 3.37 times less risky than Kingsignal Technology. It trades about 0.08 of its potential returns per unit of risk. Kingsignal Technology Co is currently generating about 0.02 per unit of risk. If you would invest 635.00 in China Construction Bank on September 3, 2024 and sell it today you would earn a total of 163.00 from holding China Construction Bank or generate 25.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Kingsignal Technology Co
Performance |
| Timeline |
| China Construction Bank |
| Kingsignal Technology |
China Construction and Kingsignal Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Kingsignal Technology
The main advantage of trading using opposite China Construction and Kingsignal Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Kingsignal Technology 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 Kingsignal Technology will offset losses from the drop in Kingsignal Technology'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 |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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