Correlation Between China Construction and OURGAME INTHOLDL
Can any of the company-specific risk be diversified away by investing in both China Construction and OURGAME INTHOLDL 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 China Construction and OURGAME INTHOLDL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Construction Bank and OURGAME INTHOLDL 00005, you can compare the effects of market volatilities on China Construction and OURGAME INTHOLDL 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 Construction with a short position of OURGAME INTHOLDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and OURGAME INTHOLDL.
Diversification Opportunities for China Construction and OURGAME INTHOLDL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and OURGAME is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and OURGAME INTHOLDL 00005 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OURGAME INTHOLDL 00005 and China Construction 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 Construction Bank are associated (or correlated) with OURGAME INTHOLDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OURGAME INTHOLDL 00005 has no effect on the direction of China Construction i.e., China Construction and OURGAME INTHOLDL go up and down completely randomly.
Pair Corralation between China Construction and OURGAME INTHOLDL
If you would invest 63.00 in China Construction Bank on September 3, 2024 and sell it today you would earn a total of 9.00 from holding China Construction Bank or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
China Construction Bank vs. OURGAME INTHOLDL 00005
Performance |
| Timeline |
| China Construction Bank |
| OURGAME INTHOLDL 00005 |
China Construction and OURGAME INTHOLDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and OURGAME INTHOLDL
The main advantage of trading using opposite China Construction and OURGAME INTHOLDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, OURGAME INTHOLDL 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 OURGAME INTHOLDL will offset losses from the drop in OURGAME INTHOLDL's long position.| China Construction vs. HSBC Holdings plc | China Construction vs. Bank of China | China Construction vs. Commonwealth Bank of |
| OURGAME INTHOLDL vs. Harmony Gold Mining | OURGAME INTHOLDL vs. MCEWEN MINING INC | OURGAME INTHOLDL vs. GigaMedia | OURGAME INTHOLDL vs. Hollywood Bowl 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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