Correlation Between China Construction and Hainan Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and Hainan Mining Co, you can compare the effects of market volatilities on China Construction and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Hainan Mining.
Diversification Opportunities for China Construction and Hainan Mining
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Hainan is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of China Construction i.e., China Construction and Hainan Mining go up and down completely randomly.
Pair Corralation between China Construction and Hainan Mining
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.51 times more return on investment than Hainan Mining. However, China Construction Bank is 1.97 times less risky than Hainan Mining. It trades about 0.08 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.02 per unit of risk. If you would invest 630.00 in China Construction Bank on September 2, 2024 and sell it today you would earn a total of 168.00 from holding China Construction Bank or generate 26.67% 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. Hainan Mining Co
Performance |
| Timeline |
| China Construction Bank |
| Hainan Mining |
China Construction and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Hainan Mining
The main advantage of trading using opposite China Construction and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| China Construction vs. Hainan Mining Co | China Construction vs. JCHX Mining Management | China Construction vs. Weichai Heavy Machinery | China Construction vs. Shenzhen Zhongzhuang Construction |
| Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Shandong Gold Mining | Hainan Mining vs. Rongsheng Petrochemical Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |