Correlation Between China Construction and CICT Mobile
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By analyzing existing cross correlation between China Construction Bank and CICT Mobile Communication, you can compare the effects of market volatilities on China Construction and CICT Mobile 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 CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and CICT Mobile.
Diversification Opportunities for China Construction and CICT Mobile
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and CICT is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and CICT Mobile Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CICT Mobile Communication 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 CICT Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CICT Mobile Communication has no effect on the direction of China Construction i.e., China Construction and CICT Mobile go up and down completely randomly.
Pair Corralation between China Construction and CICT Mobile
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.46 times more return on investment than CICT Mobile. However, China Construction Bank is 2.19 times less risky than CICT Mobile. It trades about 0.08 of its potential returns per unit of risk. CICT Mobile Communication is currently generating about 0.03 per unit of risk. If you would invest 529.00 in China Construction Bank on September 3, 2024 and sell it today you would earn a total of 269.00 from holding China Construction Bank or generate 50.85% 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. CICT Mobile Communication
Performance |
| Timeline |
| China Construction Bank |
| CICT Mobile Communication |
China Construction and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and CICT Mobile
The main advantage of trading using opposite China Construction and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, CICT Mobile 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 CICT Mobile will offset losses from the drop in CICT Mobile's long position.| China Construction vs. DO Home Collection | China Construction vs. China National Software | China Construction vs. Guangdong Jingyi Metal | China Construction vs. Guocheng Mining Co |
| CICT Mobile vs. Agricultural Bank of | CICT Mobile vs. China Construction Bank | CICT Mobile vs. Postal Savings Bank | CICT Mobile vs. Bank of Communications |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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