Correlation Between China Construction and Changjiang Publishing
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By analyzing existing cross correlation between China Construction Bank and Changjiang Publishing Media, you can compare the effects of market volatilities on China Construction and Changjiang Publishing 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 Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Changjiang Publishing.
Diversification Opportunities for China Construction and Changjiang Publishing
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Changjiang is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing 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 Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of China Construction i.e., China Construction and Changjiang Publishing go up and down completely randomly.
Pair Corralation between China Construction and Changjiang Publishing
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.48 times more return on investment than Changjiang Publishing. However, China Construction Bank is 2.07 times less risky than Changjiang Publishing. It trades about -0.02 of its potential returns per unit of risk. Changjiang Publishing Media is currently generating about -0.1 per unit of risk. If you would invest 801.00 in China Construction Bank on August 29, 2024 and sell it today you would lose (3.00) from holding China Construction Bank or give up 0.37% 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. Changjiang Publishing Media
Performance |
| Timeline |
| China Construction Bank |
| Changjiang Publishing |
China Construction and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Changjiang Publishing
The main advantage of trading using opposite China Construction and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Changjiang Publishing 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing's long position.| China Construction vs. Zhongtong Guomai Communication | China Construction vs. China Satellite Communications | China Construction vs. SUNSEA Telecommunications Co | China Construction vs. Omnijoi Media Corp |
| Changjiang Publishing vs. China State Construction | Changjiang Publishing vs. Huafa Industrial Co | Changjiang Publishing vs. China International Capital | Changjiang Publishing vs. Kweichow Moutai 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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