Correlation Between China Construction and China Publishing
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By analyzing existing cross correlation between China Construction Bank and China Publishing Media, you can compare the effects of market volatilities on China Construction and China 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 China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and China Publishing.
Diversification Opportunities for China Construction and China Publishing
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and China is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China 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 China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of China Construction i.e., China Construction and China Publishing go up and down completely randomly.
Pair Corralation between China Construction and China Publishing
Assuming the 90 days trading horizon China Construction is expected to generate 7.66 times less return on investment than China Publishing. But when comparing it to its historical volatility, China Construction Bank is 1.36 times less risky than China Publishing. It trades about 0.03 of its potential returns per unit of risk. China Publishing Media is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 696.00 in China Publishing Media on November 27, 2024 and sell it today you would earn a total of 30.00 from holding China Publishing Media or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. China Publishing Media
Performance |
| Timeline |
| China Construction Bank |
| China Publishing Media |
China Construction and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and China Publishing
The main advantage of trading using opposite China Construction and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, China 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 China Publishing will offset losses from the drop in China 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 |
| China Publishing vs. Shandong Sanyuan Biotechnology | China Publishing vs. Western Metal Materials | China Publishing vs. Yili Chuanning Biotechnology | China Publishing vs. Goldlok Toys Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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