Correlation Between Hanison Construction and CITIC
Can any of the company-specific risk be diversified away by investing in both Hanison Construction and CITIC 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 Hanison Construction and CITIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanison Construction Holdings and CITIC LTD ADR5, you can compare the effects of market volatilities on Hanison Construction and CITIC 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 Hanison Construction with a short position of CITIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanison Construction and CITIC.
Diversification Opportunities for Hanison Construction and CITIC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hanison and CITIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hanison Construction Holdings and CITIC LTD ADR5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC LTD ADR5 and Hanison 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 Hanison Construction Holdings are associated (or correlated) with CITIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC LTD ADR5 has no effect on the direction of Hanison Construction i.e., Hanison Construction and CITIC go up and down completely randomly.
Pair Corralation between Hanison Construction and CITIC
If you would invest 520.00 in CITIC LTD ADR5 on November 4, 2024 and sell it today you would earn a total of 5.00 from holding CITIC LTD ADR5 or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hanison Construction Holdings vs. CITIC LTD ADR5
Performance |
| Timeline |
| Hanison Construction |
| CITIC LTD ADR5 |
Hanison Construction and CITIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanison Construction and CITIC
The main advantage of trading using opposite Hanison Construction and CITIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanison Construction position performs unexpectedly, CITIC 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 CITIC will offset losses from the drop in CITIC's long position.| Hanison Construction vs. Hemisphere Energy Corp | Hanison Construction vs. TELECOM ITALRISP ADR10 | Hanison Construction vs. GMO Internet | Hanison Construction vs. United Rentals |
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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