Correlation Between Touchstone International and China Construction
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By analyzing existing cross correlation between Touchstone International Medical and China Construction Bank, you can compare the effects of market volatilities on Touchstone International 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 Touchstone International with a short position of China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone International and China Construction.
Diversification Opportunities for Touchstone International and China Construction
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Touchstone and China is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone International Medic 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 Touchstone 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 Touchstone International Medical 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 Touchstone International i.e., Touchstone International and China Construction go up and down completely randomly.
Pair Corralation between Touchstone International and China Construction
Assuming the 90 days trading horizon Touchstone International Medical is expected to generate 1.65 times more return on investment than China Construction. However, Touchstone International is 1.65 times more volatile than China Construction Bank. It trades about 0.12 of its potential returns per unit of risk. China Construction Bank is currently generating about 0.07 per unit of risk. If you would invest 1,367 in Touchstone International Medical on October 26, 2024 and sell it today you would earn a total of 566.00 from holding Touchstone International Medical or generate 41.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone International Medic vs. China Construction Bank
Performance |
| Timeline |
| Touchstone International |
| China Construction Bank |
Touchstone International and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone International and China Construction
The main advantage of trading using opposite Touchstone International and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone International 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.| Touchstone International vs. Agricultural Bank of | Touchstone International vs. Industrial and Commercial | Touchstone International vs. Bank of China | Touchstone International vs. China Construction Bank |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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