Correlation Between China Construction and Qingdao NovelBeam
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By analyzing existing cross correlation between China Construction Bank and Qingdao NovelBeam Technology, you can compare the effects of market volatilities on China Construction and Qingdao NovelBeam 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 Qingdao NovelBeam. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Qingdao NovelBeam.
Diversification Opportunities for China Construction and Qingdao NovelBeam
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Qingdao is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Qingdao NovelBeam Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao NovelBeam 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 Qingdao NovelBeam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao NovelBeam has no effect on the direction of China Construction i.e., China Construction and Qingdao NovelBeam go up and down completely randomly.
Pair Corralation between China Construction and Qingdao NovelBeam
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.58 times more return on investment than Qingdao NovelBeam. However, China Construction Bank is 1.73 times less risky than Qingdao NovelBeam. It trades about 0.09 of its potential returns per unit of risk. Qingdao NovelBeam Technology is currently generating about 0.02 per unit of risk. If you would invest 806.00 in China Construction Bank on November 27, 2024 and sell it today you would earn a total of 52.00 from holding China Construction Bank or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Qingdao NovelBeam Technology
Performance |
| Timeline |
| China Construction Bank |
| Qingdao NovelBeam |
China Construction and Qingdao NovelBeam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Qingdao NovelBeam
The main advantage of trading using opposite China Construction and Qingdao NovelBeam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Qingdao NovelBeam 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 Qingdao NovelBeam will offset losses from the drop in Qingdao NovelBeam's long position.| China Construction vs. Innovative Medical Management | China Construction vs. Changjiang Publishing Media | China Construction vs. Duzhe Publishing Media | China Construction vs. Huaxia Fund Management |
| Qingdao NovelBeam vs. Xian International Medical | Qingdao NovelBeam vs. Rising Nonferrous Metals | Qingdao NovelBeam vs. China World Trade | Qingdao NovelBeam vs. Hengkang Medical Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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