Correlation Between China Construction and Hangzhou Pinming
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and Hangzhou Pinming Software, you can compare the effects of market volatilities on China Construction and Hangzhou Pinming 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 Hangzhou Pinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Hangzhou Pinming.
Diversification Opportunities for China Construction and Hangzhou Pinming
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Hangzhou is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Hangzhou Pinming Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Pinming 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 Hangzhou Pinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Pinming Software has no effect on the direction of China Construction i.e., China Construction and Hangzhou Pinming go up and down completely randomly.
Pair Corralation between China Construction and Hangzhou Pinming
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.47 times more return on investment than Hangzhou Pinming. However, China Construction Bank is 2.12 times less risky than Hangzhou Pinming. It trades about 0.09 of its potential returns per unit of risk. Hangzhou Pinming Software is currently generating about 0.0 per unit of risk. If you would invest 757.00 in China Construction Bank on September 27, 2024 and sell it today you would earn a total of 131.00 from holding China Construction Bank or generate 17.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Hangzhou Pinming Software
Performance |
| Timeline |
| China Construction Bank |
| Hangzhou Pinming Software |
China Construction and Hangzhou Pinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Hangzhou Pinming
The main advantage of trading using opposite China Construction and Hangzhou Pinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Hangzhou Pinming 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 Hangzhou Pinming will offset losses from the drop in Hangzhou Pinming's long position.| China Construction vs. Industrial and Commercial | China Construction vs. Kweichow Moutai Co | China Construction vs. Agricultural Bank of | China Construction vs. China Mobile Limited |
| Hangzhou Pinming vs. Southern PublishingMedia Co | Hangzhou Pinming vs. China Asset Management | Hangzhou Pinming vs. Jiangsu Phoenix Publishing | Hangzhou Pinming vs. Shandong Publishing Media |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |