Correlation Between China Construction and Zhongzhu Medical
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By analyzing existing cross correlation between China Construction Bank and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on China Construction and Zhongzhu Medical 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 Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Zhongzhu Medical.
Diversification Opportunities for China Construction and Zhongzhu Medical
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Zhongzhu is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings 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 Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of China Construction i.e., China Construction and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between China Construction and Zhongzhu Medical
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.57 times more return on investment than Zhongzhu Medical. However, China Construction Bank is 1.77 times less risky than Zhongzhu Medical. It trades about 0.09 of its potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about 0.0 per unit of risk. If you would invest 592.00 in China Construction Bank on September 12, 2024 and sell it today you would earn a total of 245.00 from holding China Construction Bank or generate 41.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Zhongzhu Medical Holdings
Performance |
| Timeline |
| China Construction Bank |
| Zhongzhu Medical Holdings |
China Construction and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Zhongzhu Medical
The main advantage of trading using opposite China Construction and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Zhongzhu Medical 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical'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 |
| Zhongzhu Medical vs. Industrial and Commercial | Zhongzhu Medical vs. China Construction Bank | Zhongzhu Medical vs. Bank of China | Zhongzhu Medical vs. Agricultural Bank of |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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