Correlation Between China Construction and Xingyuan Environment
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By analyzing existing cross correlation between China Construction Bank and Xingyuan Environment Technology, you can compare the effects of market volatilities on China Construction and Xingyuan Environment 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 Xingyuan Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Xingyuan Environment.
Diversification Opportunities for China Construction and Xingyuan Environment
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Xingyuan is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Xingyuan Environment Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingyuan Environment 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 Xingyuan Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingyuan Environment has no effect on the direction of China Construction i.e., China Construction and Xingyuan Environment go up and down completely randomly.
Pair Corralation between China Construction and Xingyuan Environment
Assuming the 90 days trading horizon China Construction is expected to generate 17.99 times less return on investment than Xingyuan Environment. But when comparing it to its historical volatility, China Construction Bank is 9.84 times less risky than Xingyuan Environment. It trades about 0.08 of its potential returns per unit of risk. Xingyuan Environment Technology is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 261.00 in Xingyuan Environment Technology on August 31, 2024 and sell it today you would earn a total of 63.00 from holding Xingyuan Environment Technology or generate 24.14% 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. Xingyuan Environment Technolog
Performance |
| Timeline |
| China Construction Bank |
| Xingyuan Environment |
China Construction and Xingyuan Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Xingyuan Environment
The main advantage of trading using opposite China Construction and Xingyuan Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Xingyuan Environment 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 Xingyuan Environment will offset losses from the drop in Xingyuan Environment's long position.| China Construction vs. Guangdong Jinming Machinery | China Construction vs. Postal Savings Bank | China Construction vs. Peoples Insurance of | China Construction vs. Allied Machinery Co |
| Xingyuan Environment vs. Cultural Investment Holdings | Xingyuan Environment vs. Gome Telecom Equipment | Xingyuan Environment vs. Bus Online Co | Xingyuan Environment vs. Holitech Technology Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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