Correlation Between China Construction and Servyou Software
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By analyzing existing cross correlation between China Construction Bank and Servyou Software Group, you can compare the effects of market volatilities on China Construction and Servyou Software 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 Servyou Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Servyou Software.
Diversification Opportunities for China Construction and Servyou Software
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Servyou is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Servyou Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Servyou Software 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 Servyou Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Servyou Software has no effect on the direction of China Construction i.e., China Construction and Servyou Software go up and down completely randomly.
Pair Corralation between China Construction and Servyou Software
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.4 times more return on investment than Servyou Software. However, China Construction Bank is 2.48 times less risky than Servyou Software. It trades about 0.08 of its potential returns per unit of risk. Servyou Software Group is currently generating about 0.01 per unit of risk. If you would invest 529.00 in China Construction Bank on September 3, 2024 and sell it today you would earn a total of 269.00 from holding China Construction Bank or generate 50.85% 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. Servyou Software Group
Performance |
| Timeline |
| China Construction Bank |
| Servyou Software |
China Construction and Servyou Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Servyou Software
The main advantage of trading using opposite China Construction and Servyou Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Servyou Software 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 Servyou Software will offset losses from the drop in Servyou Software's long position.| China Construction vs. DO Home Collection | China Construction vs. China National Software | China Construction vs. Guangdong Jingyi Metal | China Construction vs. Guocheng Mining Co |
| Servyou Software vs. Agricultural Bank of | Servyou Software vs. China Construction Bank | Servyou Software vs. Postal Savings Bank | Servyou Software vs. Bank of Communications |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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