Correlation Between China Construction and Shanghai Shuixing
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By analyzing existing cross correlation between China Construction Bank and Shanghai Shuixing Home, you can compare the effects of market volatilities on China Construction and Shanghai Shuixing 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 Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Shanghai Shuixing.
Diversification Opportunities for China Construction and Shanghai Shuixing
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Shanghai is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home 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 Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of China Construction i.e., China Construction and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between China Construction and Shanghai Shuixing
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.52 times more return on investment than Shanghai Shuixing. However, China Construction Bank is 1.91 times less risky than Shanghai Shuixing. It trades about 0.08 of its potential returns per unit of risk. Shanghai Shuixing Home is currently generating about 0.03 per unit of risk. If you would invest 637.00 in China Construction Bank on September 4, 2024 and sell it today you would earn a total of 170.00 from holding China Construction Bank or generate 26.69% 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. Shanghai Shuixing Home
Performance |
| Timeline |
| China Construction Bank |
| Shanghai Shuixing Home |
China Construction and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Shanghai Shuixing
The main advantage of trading using opposite China Construction and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Shanghai Shuixing 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 Shanghai Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| China Construction vs. Henan Shuanghui Investment | China Construction vs. Servyou Software Group | China Construction vs. Hunan Investment Group | China Construction vs. Harbin Hatou Investment |
| Shanghai Shuixing vs. Industrial and Commercial | Shanghai Shuixing vs. China Construction Bank | Shanghai Shuixing vs. Agricultural Bank of | Shanghai Shuixing 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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