Correlation Between China Infrastructure and 1CM
Can any of the company-specific risk be diversified away by investing in both China Infrastructure and 1CM 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 Infrastructure and 1CM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Infrastructure Construction and 1CM Inc, you can compare the effects of market volatilities on China Infrastructure and 1CM 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 Infrastructure with a short position of 1CM. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Infrastructure and 1CM.
Diversification Opportunities for China Infrastructure and 1CM
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and 1CM is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding China Infrastructure Construct and 1CM Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1CM Inc and China Infrastructure 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 Infrastructure Construction are associated (or correlated) with 1CM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1CM Inc has no effect on the direction of China Infrastructure i.e., China Infrastructure and 1CM go up and down completely randomly.
Pair Corralation between China Infrastructure and 1CM
If you would invest 0.04 in China Infrastructure Construction on November 3, 2024 and sell it today you would earn a total of 0.00 from holding China Infrastructure Construction or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
China Infrastructure Construct vs. 1CM Inc
Performance |
| Timeline |
| China Infrastructure |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| 1CM Inc |
China Infrastructure and 1CM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Infrastructure and 1CM
The main advantage of trading using opposite China Infrastructure and 1CM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Infrastructure position performs unexpectedly, 1CM 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 1CM will offset losses from the drop in 1CM's long position.| China Infrastructure vs. Medicine Man Technologies | China Infrastructure vs. Kona Gold Solutions | China Infrastructure vs. Green Thumb Industries | China Infrastructure vs. Cann American Corp |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |