Correlation Between Servyou Software and China Construction
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By analyzing existing cross correlation between Servyou Software Group and China Construction Bank, you can compare the effects of market volatilities on Servyou Software and China 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 Servyou Software with a short position of China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Servyou Software and China Construction.
Diversification Opportunities for Servyou Software and China Construction
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Servyou and China is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Servyou Software Group and China Construction Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Construction Bank and Servyou Software 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 Servyou Software Group are associated (or correlated) with China Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Construction Bank has no effect on the direction of Servyou Software i.e., Servyou Software and China Construction go up and down completely randomly.
Pair Corralation between Servyou Software and China Construction
Assuming the 90 days trading horizon Servyou Software is expected to generate 2.34 times less return on investment than China Construction. In addition to that, Servyou Software is 2.72 times more volatile than China Construction Bank. It trades about 0.01 of its total potential returns per unit of risk. China Construction Bank is currently generating about 0.08 per unit of volatility. If you would invest 637.00 in China Construction Bank on September 4, 2024 and sell it today you would earn a total of 170.00 from holding China Construction Bank or generate 26.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Servyou Software Group vs. China Construction Bank
Performance |
| Timeline |
| Servyou Software |
| China Construction Bank |
Servyou Software and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Servyou Software and China Construction
The main advantage of trading using opposite Servyou Software and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Servyou Software position performs unexpectedly, China 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 China Construction will offset losses from the drop in China Construction's long position.| Servyou Software vs. BYD Co Ltd | Servyou Software vs. China Mobile Limited | Servyou Software vs. Agricultural Bank of | Servyou Software vs. Industrial and Commercial |
| China Construction vs. Henan Shuanghui Investment | China Construction vs. Servyou Software Group | China Construction vs. Hunan Investment Group | China Construction vs. Harbin Hatou Investment |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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