Correlation Between China Construction and Niutech Environment
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By analyzing existing cross correlation between China Construction Bank and Niutech Environment Technology, you can compare the effects of market volatilities on China Construction and Niutech Environment 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 Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Niutech Environment.
Diversification Opportunities for China Construction and Niutech Environment
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Niutech is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment 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 Niutech Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niutech Environment has no effect on the direction of China Construction i.e., China Construction and Niutech Environment go up and down completely randomly.
Pair Corralation between China Construction and Niutech Environment
Assuming the 90 days trading horizon China Construction Bank is expected to under-perform the Niutech Environment. But the stock apears to be less risky and, when comparing its historical volatility, China Construction Bank is 2.73 times less risky than Niutech Environment. The stock trades about 0.0 of its potential returns per unit of risk. The Niutech Environment Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,407 in Niutech Environment Technology on September 5, 2024 and sell it today you would earn a total of 51.00 from holding Niutech Environment Technology or generate 3.62% 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. Niutech Environment Technology
Performance |
| Timeline |
| China Construction Bank |
| Niutech Environment |
China Construction and Niutech Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Niutech Environment
The main advantage of trading using opposite China Construction and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Niutech Environment 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 Niutech Environment will offset losses from the drop in Niutech Environment's long position.| China Construction vs. Beijing Sanyuan Foods | China Construction vs. By health | China Construction vs. Everjoy Health Group | China Construction vs. Shandong Huifa Foodstuff |
| Niutech Environment vs. Industrial and Commercial | Niutech Environment vs. Agricultural Bank of | Niutech Environment vs. China Construction Bank | Niutech Environment 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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