Correlation Between China Construction and COL Digital
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By analyzing existing cross correlation between China Construction Bank and COL Digital Publishing, you can compare the effects of market volatilities on China Construction and COL Digital 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 COL Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and COL Digital.
Diversification Opportunities for China Construction and COL Digital
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and COL is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and COL Digital Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COL Digital Publishing 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 COL Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COL Digital Publishing has no effect on the direction of China Construction i.e., China Construction and COL Digital go up and down completely randomly.
Pair Corralation between China Construction and COL Digital
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.18 times more return on investment than COL Digital. However, China Construction Bank is 5.45 times less risky than COL Digital. It trades about -0.02 of its potential returns per unit of risk. COL Digital Publishing is currently generating about -0.12 per unit of risk. If you would invest 801.00 in China Construction Bank on August 29, 2024 and sell it today you would lose (3.00) from holding China Construction Bank or give up 0.37% 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. COL Digital Publishing
Performance |
| Timeline |
| China Construction Bank |
| COL Digital Publishing |
China Construction and COL Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and COL Digital
The main advantage of trading using opposite China Construction and COL Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, COL Digital 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 COL Digital will offset losses from the drop in COL Digital's long position.| China Construction vs. Zhongtong Guomai Communication | China Construction vs. China Satellite Communications | China Construction vs. SUNSEA Telecommunications Co | China Construction vs. Omnijoi Media Corp |
| COL Digital vs. Industrial and Commercial | COL Digital vs. Agricultural Bank of | COL Digital vs. China Construction Bank | COL Digital vs. Bank of China |
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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