Correlation Between China Construction and Harvest Fund
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By analyzing existing cross correlation between China Construction Bank and Harvest Fund Management, you can compare the effects of market volatilities on China Construction and Harvest Fund 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 Harvest Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Harvest Fund.
Diversification Opportunities for China Construction and Harvest Fund
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Harvest is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Harvest Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Fund Management 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 Harvest Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Fund Management has no effect on the direction of China Construction i.e., China Construction and Harvest Fund go up and down completely randomly.
Pair Corralation between China Construction and Harvest Fund
Assuming the 90 days trading horizon China Construction Bank is expected to generate 2.3 times more return on investment than Harvest Fund. However, China Construction is 2.3 times more volatile than Harvest Fund Management. It trades about 0.23 of its potential returns per unit of risk. Harvest Fund Management is currently generating about 0.0 per unit of risk. If you would invest 785.00 in China Construction Bank on September 13, 2024 and sell it today you would earn a total of 36.00 from holding China Construction Bank or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Harvest Fund Management
Performance |
| Timeline |
| China Construction Bank |
| Harvest Fund Management |
China Construction and Harvest Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Harvest Fund
The main advantage of trading using opposite China Construction and Harvest Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Harvest Fund 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 Harvest Fund will offset losses from the drop in Harvest Fund's long position.| China Construction vs. Eastroc Beverage Group | China Construction vs. Youyou Foods Co | China Construction vs. HaiXin Foods Co | China Construction vs. Shanghai Metersbonwe FashionAccessories |
| Harvest Fund vs. Hunan TV Broadcast | Harvest Fund vs. Jiangsu Jinling Sports | Harvest Fund vs. Zhongshan Broad Ocean Motor | Harvest Fund vs. Shandong Hi Speed RoadBridge |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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