Correlation Between China Construction and Universal Scientific
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By analyzing existing cross correlation between China Construction Bank and Universal Scientific Industrial, you can compare the effects of market volatilities on China Construction and Universal Scientific 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 Universal Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Universal Scientific.
Diversification Opportunities for China Construction and Universal Scientific
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Universal is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Universal Scientific Industria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Scientific 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 Universal Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Scientific has no effect on the direction of China Construction i.e., China Construction and Universal Scientific go up and down completely randomly.
Pair Corralation between China Construction and Universal Scientific
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.52 times more return on investment than Universal Scientific. However, China Construction Bank is 1.91 times less risky than Universal Scientific. It trades about 0.09 of its potential returns per unit of risk. Universal Scientific Industrial is currently generating about 0.01 per unit of risk. If you would invest 533.00 in China Construction Bank on September 26, 2024 and sell it today you would earn a total of 345.00 from holding China Construction Bank or generate 64.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
China Construction Bank vs. Universal Scientific Industria
Performance |
Timeline |
China Construction Bank |
Universal Scientific |
China Construction and Universal Scientific Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Construction and Universal Scientific
The main advantage of trading using opposite China Construction and Universal Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction position performs unexpectedly, Universal Scientific 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 Universal Scientific will offset losses from the drop in Universal Scientific's long position.China Construction vs. Industrial and Commercial | China Construction vs. Kweichow Moutai Co | China Construction vs. Agricultural Bank of | China Construction vs. China Mobile Limited |
Universal Scientific vs. Industrial and Commercial | Universal Scientific vs. China Construction Bank | Universal Scientific vs. Agricultural Bank of | Universal Scientific vs. Bank of China |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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