Correlation Between China Construction and Beijing Scitop
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By analyzing existing cross correlation between China Construction Bank and Beijing Scitop Bio, you can compare the effects of market volatilities on China Construction and Beijing Scitop 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 Beijing Scitop. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Beijing Scitop.
Diversification Opportunities for China Construction and Beijing Scitop
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Beijing is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Beijing Scitop Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Scitop Bio 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 Beijing Scitop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Scitop Bio has no effect on the direction of China Construction i.e., China Construction and Beijing Scitop go up and down completely randomly.
Pair Corralation between China Construction and Beijing Scitop
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.89 times more return on investment than Beijing Scitop. However, China Construction Bank is 1.12 times less risky than Beijing Scitop. It trades about -0.01 of its potential returns per unit of risk. Beijing Scitop Bio is currently generating about -0.09 per unit of risk. If you would invest 859.00 in China Construction Bank on November 3, 2024 and sell it today you would lose (5.00) from holding China Construction Bank or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Beijing Scitop Bio
Performance |
| Timeline |
| China Construction Bank |
| Beijing Scitop Bio |
China Construction and Beijing Scitop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Beijing Scitop
The main advantage of trading using opposite China Construction and Beijing Scitop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Beijing Scitop 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 Beijing Scitop will offset losses from the drop in Beijing Scitop's long position.| China Construction vs. Guangdong Liantai Environmental | China Construction vs. Shenzhen MYS Environmental | China Construction vs. Baoshan Iron Steel | China Construction vs. Holitech Technology Co |
| Beijing Scitop vs. Fiberhome Telecommunication Technologies | Beijing Scitop vs. Runjian Communication Co | Beijing Scitop vs. Shenyang Huitian Thermal | Beijing Scitop vs. Eastern Communications 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 Stocks Directory module to find actively traded stocks across global markets.
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