Correlation Between China Construction and Qingdao Baheal
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By analyzing existing cross correlation between China Construction Bank and Qingdao Baheal Medical, you can compare the effects of market volatilities on China Construction and Qingdao Baheal 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 Qingdao Baheal. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Qingdao Baheal.
Diversification Opportunities for China Construction and Qingdao Baheal
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Qingdao is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Qingdao Baheal Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Baheal Medical 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 Qingdao Baheal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Baheal Medical has no effect on the direction of China Construction i.e., China Construction and Qingdao Baheal go up and down completely randomly.
Pair Corralation between China Construction and Qingdao Baheal
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.27 times more return on investment than Qingdao Baheal. However, China Construction Bank is 3.73 times less risky than Qingdao Baheal. It trades about 0.34 of its potential returns per unit of risk. Qingdao Baheal Medical is currently generating about -0.08 per unit of risk. If you would invest 790.00 in China Construction Bank on September 12, 2024 and sell it today you would earn a total of 47.00 from holding China Construction Bank or generate 5.95% 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. Qingdao Baheal Medical
Performance |
| Timeline |
| China Construction Bank |
| Qingdao Baheal Medical |
China Construction and Qingdao Baheal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Qingdao Baheal
The main advantage of trading using opposite China Construction and Qingdao Baheal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Qingdao Baheal 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 Qingdao Baheal will offset losses from the drop in Qingdao Baheal's long position.| China Construction vs. China Petroleum Chemical | China Construction vs. PetroChina Co Ltd | China Construction vs. China Mobile Limited | China Construction vs. Industrial and Commercial |
| Qingdao Baheal vs. Cultural Investment Holdings | Qingdao Baheal vs. Gome Telecom Equipment | Qingdao Baheal vs. Holitech Technology Co | Qingdao Baheal vs. Zotye Automobile 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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