Correlation Between China Construction and Northern United
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and Northern United Publishing, you can compare the effects of market volatilities on China Construction and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Northern United.
Diversification Opportunities for China Construction and Northern United
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Northern is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of China Construction i.e., China Construction and Northern United go up and down completely randomly.
Pair Corralation between China Construction and Northern United
Assuming the 90 days trading horizon China Construction Bank is expected to under-perform the Northern United. But the stock apears to be less risky and, when comparing its historical volatility, China Construction Bank is 3.05 times less risky than Northern United. The stock trades about -0.02 of its potential returns per unit of risk. The Northern United Publishing is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 664.00 in Northern United Publishing on August 29, 2024 and sell it today you would earn a total of 28.00 from holding Northern United Publishing or generate 4.22% 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. Northern United Publishing
Performance |
| Timeline |
| China Construction Bank |
| Northern United Publ |
China Construction and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Northern United
The main advantage of trading using opposite China Construction and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.| China Construction vs. Xinjiang Tianrun Dairy | China Construction vs. HaiXin Foods Co | China Construction vs. Juewei Food Co | China Construction vs. Suzhou Douson Drilling |
| Northern United vs. Industrial and Commercial | Northern United vs. Agricultural Bank of | Northern United vs. China Construction Bank | Northern United 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Positions Ratings 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 | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |