Correlation Between China Construction and XiaMen HongXin
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By analyzing existing cross correlation between China Construction Bank and XiaMen HongXin Electron tech, you can compare the effects of market volatilities on China Construction and XiaMen HongXin 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 XiaMen HongXin. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and XiaMen HongXin.
Diversification Opportunities for China Construction and XiaMen HongXin
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and XiaMen is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and XiaMen HongXin Electron tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XiaMen HongXin Electron 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 XiaMen HongXin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XiaMen HongXin Electron has no effect on the direction of China Construction i.e., China Construction and XiaMen HongXin go up and down completely randomly.
Pair Corralation between China Construction and XiaMen HongXin
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.36 times more return on investment than XiaMen HongXin. However, China Construction Bank is 2.79 times less risky than XiaMen HongXin. It trades about 0.07 of its potential returns per unit of risk. XiaMen HongXin Electron tech is currently generating about -0.17 per unit of risk. If you would invest 831.00 in China Construction Bank on October 13, 2024 and sell it today you would earn a total of 14.00 from holding China Construction Bank or generate 1.68% 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. XiaMen HongXin Electron tech
Performance |
| Timeline |
| China Construction Bank |
| XiaMen HongXin Electron |
China Construction and XiaMen HongXin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and XiaMen HongXin
The main advantage of trading using opposite China Construction and XiaMen HongXin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, XiaMen HongXin 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 XiaMen HongXin will offset losses from the drop in XiaMen HongXin's long position.| China Construction vs. Bank of Suzhou | China Construction vs. Ping An Insurance | China Construction vs. Ningbo Tech Bank Co | China Construction vs. Xiamen Bank Co |
| XiaMen HongXin vs. Biwin Storage Technology | XiaMen HongXin vs. PetroChina Co Ltd | XiaMen HongXin vs. Industrial and Commercial | XiaMen HongXin vs. China Construction Bank |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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