Correlation Between China Construction and Shanghai Rightongene
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By analyzing existing cross correlation between China Construction Bank and Shanghai Rightongene Biotechnology, you can compare the effects of market volatilities on China Construction and Shanghai Rightongene 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 Rightongene. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Shanghai Rightongene.
Diversification Opportunities for China Construction and Shanghai Rightongene
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Shanghai is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Shanghai Rightongene Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rightongene 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 Rightongene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rightongene has no effect on the direction of China Construction i.e., China Construction and Shanghai Rightongene go up and down completely randomly.
Pair Corralation between China Construction and Shanghai Rightongene
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.4 times more return on investment than Shanghai Rightongene. However, China Construction Bank is 2.48 times less risky than Shanghai Rightongene. It trades about 0.05 of its potential returns per unit of risk. Shanghai Rightongene Biotechnology is currently generating about -0.04 per unit of risk. If you would invest 660.00 in China Construction Bank on August 29, 2024 and sell it today you would earn a total of 138.00 from holding China Construction Bank or generate 20.91% 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 Rightongene Biotechno
Performance |
| Timeline |
| China Construction Bank |
| Shanghai Rightongene |
China Construction and Shanghai Rightongene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Shanghai Rightongene
The main advantage of trading using opposite China Construction and Shanghai Rightongene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Shanghai Rightongene 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 Rightongene will offset losses from the drop in Shanghai Rightongene's long position.| China Construction vs. Zhongtong Guomai Communication | China Construction vs. China Satellite Communications | China Construction vs. SUNSEA Telecommunications Co | China Construction vs. Omnijoi Media Corp |
| Shanghai Rightongene vs. Industrial and Commercial | Shanghai Rightongene vs. China Construction Bank | Shanghai Rightongene vs. Agricultural Bank of | Shanghai Rightongene 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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