Correlation Between China Construction and Grandblue Environment
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By analyzing existing cross correlation between China Construction Bank and Grandblue Environment Co, you can compare the effects of market volatilities on China Construction and Grandblue Environment 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 Grandblue Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Grandblue Environment.
Diversification Opportunities for China Construction and Grandblue Environment
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Grandblue is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Grandblue Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grandblue Environment 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 Grandblue Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grandblue Environment has no effect on the direction of China Construction i.e., China Construction and Grandblue Environment go up and down completely randomly.
Pair Corralation between China Construction and Grandblue Environment
Assuming the 90 days trading horizon China Construction is expected to generate 1.08 times less return on investment than Grandblue Environment. But when comparing it to its historical volatility, China Construction Bank is 1.15 times less risky than Grandblue Environment. It trades about 0.09 of its potential returns per unit of risk. Grandblue Environment Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,712 in Grandblue Environment Co on September 20, 2024 and sell it today you would earn a total of 601.00 from holding Grandblue Environment Co or generate 35.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Grandblue Environment Co
Performance |
| Timeline |
| China Construction Bank |
| Grandblue Environment |
China Construction and Grandblue Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Grandblue Environment
The main advantage of trading using opposite China Construction and Grandblue Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Grandblue Environment 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 Grandblue Environment will offset losses from the drop in Grandblue Environment's long position.| China Construction vs. Agricultural Bank of | China Construction vs. Bank of China | China Construction vs. PetroChina Co Ltd | China Construction vs. China Merchants Bank |
| Grandblue Environment vs. Biwin Storage Technology | Grandblue Environment vs. PetroChina Co Ltd | Grandblue Environment vs. Industrial and Commercial | Grandblue Environment 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 Stocks Directory module to find actively traded stocks across global markets.
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