Correlation Between China Construction and Kunshan Guoli
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By analyzing existing cross correlation between China Construction Bank and Kunshan Guoli Electronic, you can compare the effects of market volatilities on China Construction and Kunshan Guoli 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 Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Kunshan Guoli.
Diversification Opportunities for China Construction and Kunshan Guoli
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Kunshan is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli Electronic 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 Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of China Construction i.e., China Construction and Kunshan Guoli go up and down completely randomly.
Pair Corralation between China Construction and Kunshan Guoli
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.36 times more return on investment than Kunshan Guoli. However, China Construction Bank is 2.8 times less risky than Kunshan Guoli. It trades about 0.08 of its potential returns per unit of risk. Kunshan Guoli Electronic 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. Kunshan Guoli Electronic
Performance |
| Timeline |
| China Construction Bank |
| Kunshan Guoli Electronic |
China Construction and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Kunshan Guoli
The main advantage of trading using opposite China Construction and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli'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 |
| Kunshan Guoli vs. Agricultural Bank of | Kunshan Guoli vs. China Construction Bank | Kunshan Guoli vs. Postal Savings Bank | Kunshan Guoli 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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