Correlation Between China Construction and Ziel Home
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By analyzing existing cross correlation between China Construction Bank and Ziel Home Furnishing, you can compare the effects of market volatilities on China Construction and Ziel Home 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 Ziel Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Ziel Home.
Diversification Opportunities for China Construction and Ziel Home
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Ziel is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Ziel Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziel Home Furnishing 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 Ziel Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziel Home Furnishing has no effect on the direction of China Construction i.e., China Construction and Ziel Home go up and down completely randomly.
Pair Corralation between China Construction and Ziel Home
Assuming the 90 days trading horizon China Construction is expected to generate 10.68 times less return on investment than Ziel Home. But when comparing it to its historical volatility, China Construction Bank is 2.02 times less risky than Ziel Home. It trades about 0.02 of its potential returns per unit of risk. Ziel Home Furnishing is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,724 in Ziel Home Furnishing on August 29, 2024 and sell it today you would earn a total of 289.00 from holding Ziel Home Furnishing or generate 16.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Ziel Home Furnishing
Performance |
| Timeline |
| China Construction Bank |
| Ziel Home Furnishing |
China Construction and Ziel Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Ziel Home
The main advantage of trading using opposite China Construction and Ziel Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Ziel Home 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 Ziel Home will offset losses from the drop in Ziel Home's long position.| China Construction vs. Xinjiang Tianrun Dairy | China Construction vs. HaiXin Foods Co | China Construction vs. Juewei Food Co | China Construction vs. Suzhou Douson Drilling |
| Ziel Home vs. Agricultural Bank of | Ziel Home vs. Industrial and Commercial | Ziel Home vs. Bank of China | Ziel Home 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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