Correlation Between China Construction and Nantong Haixing
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and Nantong Haixing Electronics, you can compare the effects of market volatilities on China Construction and Nantong Haixing 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 Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Nantong Haixing.
Diversification Opportunities for China Construction and Nantong Haixing
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Nantong is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec 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 Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of China Construction i.e., China Construction and Nantong Haixing go up and down completely randomly.
Pair Corralation between China Construction and Nantong Haixing
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.59 times more return on investment than Nantong Haixing. However, China Construction Bank is 1.69 times less risky than Nantong Haixing. It trades about 0.08 of its potential returns per unit of risk. Nantong Haixing Electronics is currently generating about 0.01 per unit of risk. If you would invest 519.00 in China Construction Bank on September 13, 2024 and sell it today you would earn a total of 302.00 from holding China Construction Bank or generate 58.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Nantong Haixing Electronics
Performance |
| Timeline |
| China Construction Bank |
| Nantong Haixing Elec |
China Construction and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Nantong Haixing
The main advantage of trading using opposite China Construction and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing's long position.| China Construction vs. Eastroc Beverage Group | China Construction vs. Youyou Foods Co | China Construction vs. HaiXin Foods Co | China Construction vs. Shanghai Metersbonwe FashionAccessories |
| Nantong Haixing vs. Industrial and Commercial | Nantong Haixing vs. Agricultural Bank of | Nantong Haixing vs. China Construction Bank | Nantong Haixing 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |