Correlation Between Sinocelltech and China Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinocelltech Group and China Construction Bank, you can compare the effects of market volatilities on Sinocelltech 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 Sinocelltech with a short position of China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocelltech and China Construction.
Diversification Opportunities for Sinocelltech and China Construction
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sinocelltech and China is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sinocelltech 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 Sinocelltech 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 Sinocelltech 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 Sinocelltech i.e., Sinocelltech and China Construction go up and down completely randomly.
Pair Corralation between Sinocelltech and China Construction
Assuming the 90 days trading horizon Sinocelltech Group is expected to generate 3.23 times more return on investment than China Construction. However, Sinocelltech is 3.23 times more volatile than China Construction Bank. It trades about 0.06 of its potential returns per unit of risk. China Construction Bank is currently generating about 0.04 per unit of risk. If you would invest 3,795 in Sinocelltech Group on September 1, 2024 and sell it today you would earn a total of 105.00 from holding Sinocelltech Group or generate 2.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sinocelltech Group vs. China Construction Bank
Performance |
Timeline |
Sinocelltech Group |
China Construction Bank |
Sinocelltech and China Construction Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinocelltech and China Construction
The main advantage of trading using opposite Sinocelltech and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocelltech 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.Sinocelltech vs. PetroChina Co Ltd | Sinocelltech vs. China Mobile Limited | Sinocelltech vs. CNOOC Limited | Sinocelltech vs. Ping An Insurance |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |