Correlation Between China Construction and APT Medical
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By analyzing existing cross correlation between China Construction Bank and APT Medical, you can compare the effects of market volatilities on China Construction and APT Medical 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 APT Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and APT Medical.
Diversification Opportunities for China Construction and APT Medical
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and APT is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and APT Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APT Medical 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 APT Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APT Medical has no effect on the direction of China Construction i.e., China Construction and APT Medical go up and down completely randomly.
Pair Corralation between China Construction and APT Medical
Assuming the 90 days trading horizon China Construction is expected to generate 4.53 times less return on investment than APT Medical. But when comparing it to its historical volatility, China Construction Bank is 1.45 times less risky than APT Medical. It trades about 0.04 of its potential returns per unit of risk. APT Medical is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 36,292 in APT Medical on November 4, 2024 and sell it today you would earn a total of 1,558 from holding APT Medical or generate 4.29% 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. APT Medical
Performance |
| Timeline |
| China Construction Bank |
| APT Medical |
China Construction and APT Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and APT Medical
The main advantage of trading using opposite China Construction and APT Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, APT Medical 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 APT Medical will offset losses from the drop in APT Medical's long position.| China Construction vs. Nantong JiangTian Chemical | China Construction vs. Xinxiang Chemical Fiber | China Construction vs. Liuzhou Chemical Industry | China Construction vs. Shenzhen Noposion Agrochemicals |
| APT Medical vs. Heilongjiang Publishing Media | APT Medical vs. Shenzhen Zhongzhuang Construction | APT Medical vs. COL Digital Publishing | APT Medical vs. Jiangsu Phoenix Publishing |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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