Correlation Between China Construction and Sharetronic Data
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By analyzing existing cross correlation between China Construction Bank and Sharetronic Data Technology, you can compare the effects of market volatilities on China Construction and Sharetronic Data 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 Sharetronic Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Sharetronic Data.
Diversification Opportunities for China Construction and Sharetronic Data
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Sharetronic is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Sharetronic Data Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharetronic Data Tec 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 Sharetronic Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharetronic Data Tec has no effect on the direction of China Construction i.e., China Construction and Sharetronic Data go up and down completely randomly.
Pair Corralation between China Construction and Sharetronic Data
Assuming the 90 days trading horizon China Construction is expected to generate 3.55 times less return on investment than Sharetronic Data. But when comparing it to its historical volatility, China Construction Bank is 3.34 times less risky than Sharetronic Data. It trades about 0.09 of its potential returns per unit of risk. Sharetronic Data Technology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5,088 in Sharetronic Data Technology on September 14, 2024 and sell it today you would earn a total of 5,682 from holding Sharetronic Data Technology or generate 111.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Sharetronic Data Technology
Performance |
| Timeline |
| China Construction Bank |
| Sharetronic Data Tec |
China Construction and Sharetronic Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Sharetronic Data
The main advantage of trading using opposite China Construction and Sharetronic Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Sharetronic Data 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 Sharetronic Data will offset losses from the drop in Sharetronic Data's long position.| China Construction vs. Tongyu Communication | China Construction vs. Zhongtong Guomai Communication | China Construction vs. Changchun Faway Automobile | China Construction vs. Allwin Telecommunication Co |
| Sharetronic Data vs. ButOne Information Corp | Sharetronic Data vs. Zoje Resources Investment | Sharetronic Data vs. Luyin Investment Group | Sharetronic Data vs. Tianshan Aluminum Group |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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