Correlation Between China Construction and Shanghai OPM
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and Shanghai OPM Biosciences, you can compare the effects of market volatilities on China Construction and Shanghai OPM 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 OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Shanghai OPM.
Diversification Opportunities for China Construction and Shanghai OPM
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Shanghai is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Shanghai OPM Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai OPM Biosciences 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 OPM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai OPM Biosciences has no effect on the direction of China Construction i.e., China Construction and Shanghai OPM go up and down completely randomly.
Pair Corralation between China Construction and Shanghai OPM
Assuming the 90 days trading horizon China Construction is expected to generate 16.48 times less return on investment than Shanghai OPM. But when comparing it to its historical volatility, China Construction Bank is 4.38 times less risky than Shanghai OPM. It trades about 0.04 of its potential returns per unit of risk. Shanghai OPM Biosciences is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,860 in Shanghai OPM Biosciences on August 30, 2024 and sell it today you would earn a total of 408.00 from holding Shanghai OPM Biosciences or generate 10.57% 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. Shanghai OPM Biosciences
Performance |
| Timeline |
| China Construction Bank |
| Shanghai OPM Biosciences |
China Construction and Shanghai OPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Shanghai OPM
The main advantage of trading using opposite China Construction and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Shanghai OPM 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 OPM will offset losses from the drop in Shanghai OPM's long position.| China Construction vs. Xinjiang Tianrun Dairy | China Construction vs. HaiXin Foods Co | China Construction vs. Juewei Food Co | China Construction vs. Suzhou Douson Drilling |
| Shanghai OPM vs. Kunwu Jiuding Investment | Shanghai OPM vs. Ningbo Ligong Online | Shanghai OPM vs. Henan Shuanghui Investment | Shanghai OPM vs. Bank of Suzhou |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |