Correlation Between Qiaoyin Environmental and China Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Qiaoyin Environmental Tech and China Construction Bank, you can compare the effects of market volatilities on Qiaoyin Environmental 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 Qiaoyin Environmental with a short position of China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qiaoyin Environmental and China Construction.
Diversification Opportunities for Qiaoyin Environmental and China Construction
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qiaoyin and China is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Qiaoyin Environmental Tech 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 Qiaoyin Environmental 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 Qiaoyin Environmental Tech 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 Qiaoyin Environmental i.e., Qiaoyin Environmental and China Construction go up and down completely randomly.
Pair Corralation between Qiaoyin Environmental and China Construction
Assuming the 90 days trading horizon Qiaoyin Environmental Tech is expected to generate 2.04 times more return on investment than China Construction. However, Qiaoyin Environmental is 2.04 times more volatile than China Construction Bank. It trades about 0.16 of its potential returns per unit of risk. China Construction Bank is currently generating about 0.14 per unit of risk. If you would invest 825.00 in Qiaoyin Environmental Tech on September 25, 2024 and sell it today you would earn a total of 253.00 from holding Qiaoyin Environmental Tech or generate 30.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.33% |
Values | Daily Returns |
Qiaoyin Environmental Tech vs. China Construction Bank
Performance |
Timeline |
Qiaoyin Environmental |
China Construction Bank |
Qiaoyin Environmental and China Construction Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Qiaoyin Environmental and China Construction
The main advantage of trading using opposite Qiaoyin Environmental and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qiaoyin Environmental 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.Qiaoyin Environmental vs. Sichuan Yahua Industrial | Qiaoyin Environmental vs. Kangxin New Materials | Qiaoyin Environmental vs. Tibet Huayu Mining | Qiaoyin Environmental vs. China Nonferrous Metal |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |