Correlation Between China Construction and Shanghai Zhangjiang
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By analyzing existing cross correlation between China Construction Bank and Shanghai Zhangjiang Hi Tech, you can compare the effects of market volatilities on China Construction and Shanghai Zhangjiang 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 Zhangjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Shanghai Zhangjiang.
Diversification Opportunities for China Construction and Shanghai Zhangjiang
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Shanghai is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Shanghai Zhangjiang Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Zhangjiang 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 Zhangjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Zhangjiang has no effect on the direction of China Construction i.e., China Construction and Shanghai Zhangjiang go up and down completely randomly.
Pair Corralation between China Construction and Shanghai Zhangjiang
Assuming the 90 days trading horizon China Construction is expected to generate 3.89 times less return on investment than Shanghai Zhangjiang. But when comparing it to its historical volatility, China Construction Bank is 2.58 times less risky than Shanghai Zhangjiang. It trades about 0.05 of its potential returns per unit of risk. Shanghai Zhangjiang Hi Tech is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,923 in Shanghai Zhangjiang Hi Tech on August 25, 2024 and sell it today you would earn a total of 946.00 from holding Shanghai Zhangjiang Hi Tech or generate 49.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Shanghai Zhangjiang Hi Tech
Performance |
| Timeline |
| China Construction Bank |
| Shanghai Zhangjiang |
China Construction and Shanghai Zhangjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Shanghai Zhangjiang
The main advantage of trading using opposite China Construction and Shanghai Zhangjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Shanghai Zhangjiang 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 Zhangjiang will offset losses from the drop in Shanghai Zhangjiang's long position.| China Construction vs. Zhengzhou Qianweiyangchu Food | China Construction vs. Panda Dairy Corp | China Construction vs. Youyou Foods Co | China Construction vs. Zhongyin Babi Food |
| Shanghai Zhangjiang vs. Industrial and Commercial | Shanghai Zhangjiang vs. China Construction Bank | Shanghai Zhangjiang vs. Bank of China | Shanghai Zhangjiang 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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