Correlation Between China Construction and Suzhou Mingzhi
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and Suzhou Mingzhi Technology, you can compare the effects of market volatilities on China Construction and Suzhou Mingzhi 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 Suzhou Mingzhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Suzhou Mingzhi.
Diversification Opportunities for China Construction and Suzhou Mingzhi
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Suzhou is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Suzhou Mingzhi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Mingzhi Technology 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 Suzhou Mingzhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Mingzhi Technology has no effect on the direction of China Construction i.e., China Construction and Suzhou Mingzhi go up and down completely randomly.
Pair Corralation between China Construction and Suzhou Mingzhi
Assuming the 90 days trading horizon China Construction is expected to generate 4.46 times less return on investment than Suzhou Mingzhi. But when comparing it to its historical volatility, China Construction Bank is 1.43 times less risky than Suzhou Mingzhi. It trades about 0.13 of its potential returns per unit of risk. Suzhou Mingzhi Technology is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 1,570 in Suzhou Mingzhi Technology on November 7, 2024 and sell it today you would earn a total of 229.00 from holding Suzhou Mingzhi Technology or generate 14.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Suzhou Mingzhi Technology
Performance |
| Timeline |
| China Construction Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Suzhou Mingzhi Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Construction and Suzhou Mingzhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Suzhou Mingzhi
The main advantage of trading using opposite China Construction and Suzhou Mingzhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Suzhou Mingzhi 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 Suzhou Mingzhi will offset losses from the drop in Suzhou Mingzhi's long position.| China Construction vs. Bank of Beijing | China Construction vs. Ping An Bank | China Construction vs. Bank of Shanghai |
| Suzhou Mingzhi vs. Shanghai SK Automation | Suzhou Mingzhi vs. Chongqing Mas SciTech | Suzhou Mingzhi vs. Zhejiang Jiecang Linear | Suzhou Mingzhi vs. Zhejiang Kaishan Compressor |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |