Correlation Between China Construction and 360 Security
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By analyzing existing cross correlation between China Construction Bank and 360 Security Technology, you can compare the effects of market volatilities on China Construction and 360 Security 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 360 Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and 360 Security.
Diversification Opportunities for China Construction and 360 Security
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and 360 is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and 360 Security Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Security Technology 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 360 Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Security Technology has no effect on the direction of China Construction i.e., China Construction and 360 Security go up and down completely randomly.
Pair Corralation between China Construction and 360 Security
Assuming the 90 days trading horizon China Construction is expected to generate 7.75 times less return on investment than 360 Security. But when comparing it to its historical volatility, China Construction Bank is 2.93 times less risky than 360 Security. It trades about 0.1 of its potential returns per unit of risk. 360 Security Technology is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 693.00 in 360 Security Technology on September 3, 2024 and sell it today you would earn a total of 647.00 from holding 360 Security Technology or generate 93.36% 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. 360 Security Technology
Performance |
| Timeline |
| China Construction Bank |
| 360 Security Technology |
China Construction and 360 Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and 360 Security
The main advantage of trading using opposite China Construction and 360 Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, 360 Security 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 360 Security will offset losses from the drop in 360 Security's long position.| China Construction vs. DO Home Collection | China Construction vs. China National Software | China Construction vs. Guangdong Jingyi Metal | China Construction vs. Guocheng Mining Co |
| 360 Security vs. Agricultural Bank of | 360 Security vs. China Construction Bank | 360 Security vs. Postal Savings Bank | 360 Security vs. Bank of Communications |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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