Correlation Between China Construction and AVIC Heavy
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and AVIC Heavy Machinery, you can compare the effects of market volatilities on China Construction and AVIC Heavy 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 AVIC Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and AVIC Heavy.
Diversification Opportunities for China Construction and AVIC Heavy
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and AVIC is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and AVIC Heavy Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVIC Heavy Machinery 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 AVIC Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVIC Heavy Machinery has no effect on the direction of China Construction i.e., China Construction and AVIC Heavy go up and down completely randomly.
Pair Corralation between China Construction and AVIC Heavy
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.52 times more return on investment than AVIC Heavy. However, China Construction Bank is 1.91 times less risky than AVIC Heavy. It trades about 0.08 of its potential returns per unit of risk. AVIC Heavy Machinery is currently generating about -0.03 per unit of risk. If you would invest 529.00 in China Construction Bank on October 16, 2024 and sell it today you would earn a total of 303.00 from holding China Construction Bank or generate 57.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. AVIC Heavy Machinery
Performance |
| Timeline |
| China Construction Bank |
| AVIC Heavy Machinery |
China Construction and AVIC Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and AVIC Heavy
The main advantage of trading using opposite China Construction and AVIC Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, AVIC Heavy 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 AVIC Heavy will offset losses from the drop in AVIC Heavy's long position.| China Construction vs. Jiangsu Xinri E Vehicle | China Construction vs. Iat Automobile Technology | China Construction vs. CIMC Vehicles Co | China Construction vs. Innovative Medical Management |
| AVIC Heavy vs. Biwin Storage Technology | AVIC Heavy vs. PetroChina Co Ltd | AVIC Heavy vs. Industrial and Commercial | AVIC Heavy 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |