Correlation Between China Construction and BeiGene
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and BeiGene, you can compare the effects of market volatilities on China Construction and BeiGene 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 BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and BeiGene.
Diversification Opportunities for China Construction and BeiGene
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and BeiGene is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene 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 BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of China Construction i.e., China Construction and BeiGene go up and down completely randomly.
Pair Corralation between China Construction and BeiGene
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.3 times more return on investment than BeiGene. However, China Construction Bank is 3.39 times less risky than BeiGene. It trades about -0.09 of its potential returns per unit of risk. BeiGene is currently generating about -0.05 per unit of risk. If you would invest 801.00 in China Construction Bank on August 27, 2024 and sell it today you would lose (13.00) from holding China Construction Bank or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. BeiGene
Performance |
| Timeline |
| China Construction Bank |
| BeiGene |
China Construction and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and BeiGene
The main advantage of trading using opposite China Construction and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.| China Construction vs. Threes Company Media | China Construction vs. Omnijoi Media Corp | China Construction vs. Nanxing Furniture Machinery | China Construction vs. Qumei Furniture Group |
| BeiGene vs. Industrial and Commercial | BeiGene vs. China Construction Bank | BeiGene vs. Agricultural Bank of | BeiGene 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |