Correlation Between Concrete Pumping and China State
Can any of the company-specific risk be diversified away by investing in both Concrete Pumping and China State at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Concrete Pumping and China State into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concrete Pumping Holdings and China State Construction, you can compare the effects of market volatilities on Concrete Pumping and China State 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 Concrete Pumping with a short position of China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concrete Pumping and China State.
Diversification Opportunities for Concrete Pumping and China State
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Concrete and China is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Concrete Pumping Holdings and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction and Concrete Pumping 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 Concrete Pumping Holdings are associated (or correlated) with China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Concrete Pumping i.e., Concrete Pumping and China State go up and down completely randomly.
Pair Corralation between Concrete Pumping and China State
Assuming the 90 days horizon Concrete Pumping Holdings is expected to generate 3.73 times more return on investment than China State. However, Concrete Pumping is 3.73 times more volatile than China State Construction. It trades about 0.03 of its potential returns per unit of risk. China State Construction is currently generating about 0.03 per unit of risk. If you would invest 15.00 in Concrete Pumping Holdings on August 31, 2024 and sell it today you would lose (12.10) from holding Concrete Pumping Holdings or give up 80.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 35.53% |
| Values | Daily Returns |
Concrete Pumping Holdings vs. China State Construction
Performance |
| Timeline |
| Concrete Pumping Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China State Construction |
Concrete Pumping and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concrete Pumping and China State
The main advantage of trading using opposite Concrete Pumping and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concrete Pumping position performs unexpectedly, China State 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 State will offset losses from the drop in China State's long position.| Concrete Pumping vs. Diamond Estates Wines | Concrete Pumping vs. CF Industries Holdings | Concrete Pumping vs. Hawkins | Concrete Pumping vs. Hudson Technologies |
| China State vs. Orion Group Holdings | China State vs. Agrify Corp | China State vs. Matrix Service Co | China State vs. MYR 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |