Correlation Between China Construction and Tibet Huayu
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By analyzing existing cross correlation between China Construction Bank and Tibet Huayu Mining, you can compare the effects of market volatilities on China Construction and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Tibet Huayu.
Diversification Opportunities for China Construction and Tibet Huayu
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Tibet is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of China Construction i.e., China Construction and Tibet Huayu go up and down completely randomly.
Pair Corralation between China Construction and Tibet Huayu
Assuming the 90 days trading horizon China Construction is expected to generate 2.67 times less return on investment than Tibet Huayu. But when comparing it to its historical volatility, China Construction Bank is 2.72 times less risky than Tibet Huayu. It trades about 0.07 of its potential returns per unit of risk. Tibet Huayu Mining is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 929.00 in Tibet Huayu Mining on January 3, 2025 and sell it today you would earn a total of 1,023 from holding Tibet Huayu Mining or generate 110.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Tibet Huayu Mining
Performance |
| Timeline |
| China Construction Bank |
| Tibet Huayu Mining |
China Construction and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Tibet Huayu
The main advantage of trading using opposite China Construction and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu's long position.| China Construction vs. Guangdong Brandmax Marketing | China Construction vs. Zhangjiagang Freetrade Science | China Construction vs. Vontron Technology Co | China Construction vs. Montage Technology Co |
| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Shandong Gold Mining |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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