Correlation Between Imeik Technology and China Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Imeik Technology Development and China Construction Bank, you can compare the effects of market volatilities on Imeik Technology 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 Imeik Technology with a short position of China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imeik Technology and China Construction.
Diversification Opportunities for Imeik Technology and China Construction
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Imeik and China is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Imeik Technology Development 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 Imeik Technology 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 Imeik Technology Development 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 Imeik Technology i.e., Imeik Technology and China Construction go up and down completely randomly.
Pair Corralation between Imeik Technology and China Construction
Assuming the 90 days trading horizon Imeik Technology is expected to generate 3.28 times less return on investment than China Construction. In addition to that, Imeik Technology is 2.84 times more volatile than China Construction Bank. It trades about 0.01 of its total potential returns per unit of risk. China Construction Bank is currently generating about 0.09 per unit of volatility. If you would invest 638.00 in China Construction Bank on September 19, 2024 and sell it today you would earn a total of 217.00 from holding China Construction Bank or generate 34.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Imeik Technology Development vs. China Construction Bank
Performance |
Timeline |
Imeik Technology Dev |
China Construction Bank |
Imeik Technology and China Construction Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Imeik Technology and China Construction
The main advantage of trading using opposite Imeik Technology and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imeik Technology 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.Imeik Technology vs. Industrial and Commercial | Imeik Technology vs. Kweichow Moutai Co | Imeik Technology vs. Agricultural Bank of | Imeik Technology vs. China Mobile Limited |
China Construction vs. Jiangxi Hengda Hi Tech | China Construction vs. Strait Innovation Internet | China Construction vs. Railway Signal Communication | China Construction vs. Changjiang Publishing Media |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |