Correlation Between China International and Zhejiang Construction
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By analyzing existing cross correlation between China International Capital and Zhejiang Construction Investment, you can compare the effects of market volatilities on China International and Zhejiang Construction 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 International with a short position of Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and Zhejiang Construction.
Diversification Opportunities for China International and Zhejiang Construction
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Zhejiang is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding China International Capital and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction and China International 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 International Capital are associated (or correlated) with Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of China International i.e., China International and Zhejiang Construction go up and down completely randomly.
Pair Corralation between China International and Zhejiang Construction
Assuming the 90 days trading horizon China International Capital is expected to generate 0.81 times more return on investment than Zhejiang Construction. However, China International Capital is 1.24 times less risky than Zhejiang Construction. It trades about 0.0 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about -0.04 per unit of risk. If you would invest 3,832 in China International Capital on September 2, 2024 and sell it today you would lose (276.00) from holding China International Capital or give up 7.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
China International Capital vs. Zhejiang Construction Investme
Performance |
| Timeline |
| China International |
| Zhejiang Construction |
China International and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and Zhejiang Construction
The main advantage of trading using opposite China International and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's long position.| China International vs. UE Furniture Co | China International vs. CICC Fund Management | China International vs. Hunan Mendale Hometextile | China International vs. China Asset Management |
| Zhejiang Construction vs. Hainan Haiqi Transportation | Zhejiang Construction vs. Shaanxi Broadcast TV | Zhejiang Construction vs. Tibet Huayu Mining | Zhejiang Construction vs. Chongqing Road Bridge |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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