Correlation Between China Construction and Shanghai Shibei
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and Shanghai Shibei Hi Tech, you can compare the effects of market volatilities on China Construction and Shanghai Shibei 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 Shanghai Shibei. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Shanghai Shibei.
Diversification Opportunities for China Construction and Shanghai Shibei
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Shanghai is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Shanghai Shibei Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shibei Hi 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 Shanghai Shibei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shibei Hi has no effect on the direction of China Construction i.e., China Construction and Shanghai Shibei go up and down completely randomly.
Pair Corralation between China Construction and Shanghai Shibei
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.73 times more return on investment than Shanghai Shibei. However, China Construction Bank is 1.36 times less risky than Shanghai Shibei. It trades about -0.01 of its potential returns per unit of risk. Shanghai Shibei Hi Tech is currently generating about -0.1 per unit of risk. If you would invest 859.00 in China Construction Bank on November 3, 2024 and sell it today you would lose (5.00) from holding China Construction Bank or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Shanghai Shibei Hi Tech
Performance |
| Timeline |
| China Construction Bank |
| Shanghai Shibei Hi |
China Construction and Shanghai Shibei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Shanghai Shibei
The main advantage of trading using opposite China Construction and Shanghai Shibei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Shanghai Shibei 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 Shanghai Shibei will offset losses from the drop in Shanghai Shibei's long position.| China Construction vs. Zhejiang Zhengguang Industrial | China Construction vs. JCHX Mining Management | China Construction vs. GRINM Semiconductor Materials | China Construction vs. Hainan Mining Co |
| Shanghai Shibei vs. Zotye Automobile Co | Shanghai Shibei vs. Ningbo Fangzheng Automobile | Shanghai Shibei vs. CIMC Vehicles Co | Shanghai Shibei vs. Linewell Software 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |