Correlation Between China Construction and Eyebright Medical
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By analyzing existing cross correlation between China Construction Bank and Eyebright Medical Technology, you can compare the effects of market volatilities on China Construction and Eyebright 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 Eyebright Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Eyebright Medical.
Diversification Opportunities for China Construction and Eyebright Medical
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Eyebright is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Eyebright Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eyebright Medical 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 Eyebright Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eyebright Medical has no effect on the direction of China Construction i.e., China Construction and Eyebright Medical go up and down completely randomly.
Pair Corralation between China Construction and Eyebright Medical
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.68 times more return on investment than Eyebright Medical. However, China Construction Bank is 1.47 times less risky than Eyebright Medical. It trades about 0.13 of its potential returns per unit of risk. Eyebright Medical Technology is currently generating about -0.08 per unit of risk. If you would invest 829.00 in China Construction Bank on November 5, 2024 and sell it today you would earn a total of 25.00 from holding China Construction Bank or generate 3.02% 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. Eyebright Medical Technology
Performance |
| Timeline |
| China Construction Bank |
| Eyebright Medical |
China Construction and Eyebright Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Eyebright Medical
The main advantage of trading using opposite China Construction and Eyebright Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Eyebright 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 Eyebright Medical will offset losses from the drop in Eyebright Medical's long position.| China Construction vs. Easyhome New Retail | China Construction vs. Chongqing Changan Automobile | China Construction vs. Ningbo Ligong Online | China Construction vs. Ningbo Tip Rubber |
| Eyebright Medical vs. Lander Sports Development | Eyebright Medical vs. Simei Media Co | Eyebright Medical vs. Heilongjiang Publishing Media | Eyebright Medical vs. Beijing Jiaman Dress |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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