Correlation Between China Construction and Cowealth Medical
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By analyzing existing cross correlation between China Construction Bank and Cowealth Medical China, you can compare the effects of market volatilities on China Construction and Cowealth Medical 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 Cowealth Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Cowealth Medical.
Diversification Opportunities for China Construction and Cowealth Medical
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Cowealth is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Cowealth Medical China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cowealth Medical China 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 Cowealth Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cowealth Medical China has no effect on the direction of China Construction i.e., China Construction and Cowealth Medical go up and down completely randomly.
Pair Corralation between China Construction and Cowealth Medical
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.43 times more return on investment than Cowealth Medical. However, China Construction Bank is 2.34 times less risky than Cowealth Medical. It trades about 0.08 of its potential returns per unit of risk. Cowealth Medical China is currently generating about -0.02 per unit of risk. If you would invest 527.00 in China Construction Bank on November 1, 2024 and sell it today you would earn a total of 327.00 from holding China Construction Bank or generate 62.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Cowealth Medical China
Performance |
| Timeline |
| China Construction Bank |
| Cowealth Medical China |
China Construction and Cowealth Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Cowealth Medical
The main advantage of trading using opposite China Construction and Cowealth Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Cowealth Medical 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 Cowealth Medical will offset losses from the drop in Cowealth Medical's long position.| China Construction vs. Nuode Investment Co | China Construction vs. Liuzhou Chemical Industry | China Construction vs. Xiandai Investment Co | China Construction vs. Zhongrun Resources Investment |
| Cowealth Medical vs. Ningbo Bohui Chemical | Cowealth Medical vs. Guizhou Chanhen Chemical | Cowealth Medical vs. Shanghai Construction Group | Cowealth Medical vs. Shenzhen Zhongzhuang Construction |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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