Correlation Between China Construction and Shandong Publishing
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By analyzing existing cross correlation between China Construction Bank and Shandong Publishing Media, you can compare the effects of market volatilities on China Construction and Shandong 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 Shandong Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Shandong Publishing.
Diversification Opportunities for China Construction and Shandong Publishing
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Shandong is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Shandong Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Publishing Media 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 Shandong Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Publishing Media has no effect on the direction of China Construction i.e., China Construction and Shandong Publishing go up and down completely randomly.
Pair Corralation between China Construction and Shandong Publishing
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.9 times more return on investment than Shandong Publishing. However, China Construction Bank is 1.11 times less risky than Shandong Publishing. It trades about 0.03 of its potential returns per unit of risk. Shandong Publishing Media is currently generating about -0.26 per unit of risk. If you would invest 854.00 in China Construction Bank on November 27, 2024 and sell it today you would earn a total of 4.00 from holding China Construction Bank or generate 0.47% 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. Shandong Publishing Media
Performance |
| Timeline |
| China Construction Bank |
| Shandong Publishing Media |
China Construction and Shandong Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Shandong Publishing
The main advantage of trading using opposite China Construction and Shandong Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Shandong 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 Shandong Publishing will offset losses from the drop in Shandong Publishing's long position.| China Construction vs. Innovative Medical Management | China Construction vs. Changjiang Publishing Media | China Construction vs. Duzhe Publishing Media | China Construction vs. Huaxia Fund Management |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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