Correlation Between China Construction and Dongxing Sec
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By analyzing existing cross correlation between China Construction Bank and Dongxing Sec Co, you can compare the effects of market volatilities on China Construction and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Dongxing Sec.
Diversification Opportunities for China Construction and Dongxing Sec
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Dongxing is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of China Construction i.e., China Construction and Dongxing Sec go up and down completely randomly.
Pair Corralation between China Construction and Dongxing Sec
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.61 times more return on investment than Dongxing Sec. However, China Construction Bank is 1.64 times less risky than Dongxing Sec. It trades about 0.07 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.04 per unit of risk. If you would invest 528.00 in China Construction Bank on August 26, 2024 and sell it today you would earn a total of 256.00 from holding China Construction Bank or generate 48.48% 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. Dongxing Sec Co
Performance |
| Timeline |
| China Construction Bank |
| Dongxing Sec |
China Construction and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Dongxing Sec
The main advantage of trading using opposite China Construction and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| China Construction vs. Longjian Road Bridge | China Construction vs. Dazhong Transportation Group | China Construction vs. Silkroad Visual Technology | China Construction vs. Road Environment Technology |
| Dongxing Sec vs. Industrial and Commercial | Dongxing Sec vs. Agricultural Bank of | Dongxing Sec vs. China Construction Bank | Dongxing Sec vs. Bank of China |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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