Correlation Between China Construction and GRINM Semiconductor
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By analyzing existing cross correlation between China Construction Bank and GRINM Semiconductor Materials, you can compare the effects of market volatilities on China Construction and GRINM Semiconductor 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 GRINM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and GRINM Semiconductor.
Diversification Opportunities for China Construction and GRINM Semiconductor
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and GRINM is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and GRINM Semiconductor Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRINM Semiconductor 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 GRINM Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRINM Semiconductor has no effect on the direction of China Construction i.e., China Construction and GRINM Semiconductor go up and down completely randomly.
Pair Corralation between China Construction and GRINM Semiconductor
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.42 times more return on investment than GRINM Semiconductor. However, China Construction Bank is 2.39 times less risky than GRINM Semiconductor. It trades about 0.08 of its potential returns per unit of risk. GRINM Semiconductor Materials is currently generating about 0.02 per unit of risk. If you would invest 635.00 in China Construction Bank on September 3, 2024 and sell it today you would earn a total of 163.00 from holding China Construction Bank or generate 25.67% 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. GRINM Semiconductor Materials
Performance |
| Timeline |
| China Construction Bank |
| GRINM Semiconductor |
China Construction and GRINM Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and GRINM Semiconductor
The main advantage of trading using opposite China Construction and GRINM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, GRINM Semiconductor 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 GRINM Semiconductor will offset losses from the drop in GRINM Semiconductor'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 |
| GRINM Semiconductor vs. Agricultural Bank of | GRINM Semiconductor vs. China Construction Bank | GRINM Semiconductor vs. Postal Savings Bank | GRINM Semiconductor 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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