Correlation Between China Construction and GuoChuang Software
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and GuoChuang Software Co, you can compare the effects of market volatilities on China Construction and GuoChuang Software 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 GuoChuang Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and GuoChuang Software.
Diversification Opportunities for China Construction and GuoChuang Software
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and GuoChuang is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and GuoChuang Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GuoChuang Software 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 GuoChuang Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GuoChuang Software has no effect on the direction of China Construction i.e., China Construction and GuoChuang Software go up and down completely randomly.
Pair Corralation between China Construction and GuoChuang Software
Assuming the 90 days trading horizon China Construction is expected to generate 1.5 times less return on investment than GuoChuang Software. But when comparing it to its historical volatility, China Construction Bank is 3.49 times less risky than GuoChuang Software. It trades about 0.08 of its potential returns per unit of risk. GuoChuang Software Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,342 in GuoChuang Software Co on September 4, 2024 and sell it today you would earn a total of 332.00 from holding GuoChuang Software Co or generate 14.18% 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. GuoChuang Software Co
Performance |
| Timeline |
| China Construction Bank |
| GuoChuang Software |
China Construction and GuoChuang Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and GuoChuang Software
The main advantage of trading using opposite China Construction and GuoChuang Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, GuoChuang Software 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 GuoChuang Software will offset losses from the drop in GuoChuang Software's long position.| China Construction vs. Henan Shuanghui Investment | China Construction vs. Servyou Software Group | China Construction vs. Hunan Investment Group | China Construction vs. Harbin Hatou Investment |
| GuoChuang Software vs. Jiangxi Naipu Mining | GuoChuang Software vs. Chenzhou Jingui Silver | GuoChuang Software vs. Hainan Mining Co | GuoChuang Software vs. JCHX Mining Management |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |