Correlation Between China Construction and Dongguan Tarry
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and Dongguan Tarry Electronics, you can compare the effects of market volatilities on China Construction and Dongguan Tarry 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 Dongguan Tarry. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Dongguan Tarry.
Diversification Opportunities for China Construction and Dongguan Tarry
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Dongguan is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Dongguan Tarry Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Tarry Elect 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 Dongguan Tarry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Tarry Elect has no effect on the direction of China Construction i.e., China Construction and Dongguan Tarry go up and down completely randomly.
Pair Corralation between China Construction and Dongguan Tarry
Assuming the 90 days trading horizon China Construction Bank is expected to under-perform the Dongguan Tarry. But the stock apears to be less risky and, when comparing its historical volatility, China Construction Bank is 2.87 times less risky than Dongguan Tarry. The stock trades about -0.1 of its potential returns per unit of risk. The Dongguan Tarry Electronics is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 5,859 in Dongguan Tarry Electronics on September 4, 2024 and sell it today you would earn a total of 290.00 from holding Dongguan Tarry Electronics or generate 4.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Dongguan Tarry Electronics
Performance |
| Timeline |
| China Construction Bank |
| Dongguan Tarry Elect |
China Construction and Dongguan Tarry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Dongguan Tarry
The main advantage of trading using opposite China Construction and Dongguan Tarry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Dongguan Tarry 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 Dongguan Tarry will offset losses from the drop in Dongguan Tarry'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 |
| Dongguan Tarry vs. Bank of China | Dongguan Tarry vs. Kweichow Moutai Co | Dongguan Tarry vs. PetroChina Co Ltd | Dongguan Tarry vs. Bank of Communications |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| 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 | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |