Correlation Between China Construction and Shanghai Rendu
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By analyzing existing cross correlation between China Construction Bank and Shanghai Rendu Biotechnology, you can compare the effects of market volatilities on China Construction and Shanghai Rendu 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 Rendu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Shanghai Rendu.
Diversification Opportunities for China Construction and Shanghai Rendu
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Shanghai is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Shanghai Rendu Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rendu Biote 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 Rendu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rendu Biote has no effect on the direction of China Construction i.e., China Construction and Shanghai Rendu go up and down completely randomly.
Pair Corralation between China Construction and Shanghai Rendu
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.3 times more return on investment than Shanghai Rendu. However, China Construction Bank is 3.28 times less risky than Shanghai Rendu. It trades about 0.23 of its potential returns per unit of risk. Shanghai Rendu Biotechnology is currently generating about -0.06 per unit of risk. If you would invest 785.00 in China Construction Bank on September 13, 2024 and sell it today you would earn a total of 36.00 from holding China Construction Bank or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Shanghai Rendu Biotechnology
Performance |
| Timeline |
| China Construction Bank |
| Shanghai Rendu Biote |
China Construction and Shanghai Rendu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Shanghai Rendu
The main advantage of trading using opposite China Construction and Shanghai Rendu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Shanghai Rendu 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 Rendu will offset losses from the drop in Shanghai Rendu's long position.| China Construction vs. Eastroc Beverage Group | China Construction vs. Youyou Foods Co | China Construction vs. HaiXin Foods Co | China Construction vs. Shanghai Metersbonwe FashionAccessories |
| Shanghai Rendu vs. Industrial and Commercial | Shanghai Rendu vs. China Construction Bank | Shanghai Rendu vs. Bank of China | Shanghai Rendu vs. Agricultural Bank of |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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